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Solar Power: Renewables Obligation

Question for Department for Energy and Climate Change

UIN 8691, tabled on 4 September 2015

To ask the Secretary of State for Energy and Climate Change, with reference to her Department's consultation on a proposal to close the Renewables Obligation to rooftop and ground-mounted solar projects below 5MW from 1 April 2016, what estimate her Department has made of the average change in value of annual household energy bills in (a) 2015-16, (b) 2016-17 and (c) 2017-18 if that proposal were implemented.

Answered on

15 September 2015

As set out in the consultation document [1], the evidence indicates that deployment for solar PV up to and including 5 megawatt (MW) is increasing substantially compared to previous estimates. The updated estimates now range from 800 MW to 2 gigawatts (GW) each year in 2015/16 and 2016/17 compared to previous estimates of 300 to 500 MW.

As a result of the proposed government intervention to close the Renewables Obligation to rooftop and ground-mounted solar projects below 5MW from 1 April 2016, annual household electricity bills will be lower. Consumers are expected to save between £0.20 and £0.60 in 2016/17, and between £0.50 and £1.20 in 2017/18. (These figures are round to the nearest decimal point are in real 2014 prices). In 2015/16 consumers would not make any savings as the closure will take effect from 1 April 2016.

Without the proposed intervention, customer bills would therefore be higher.

[1] https://www.gov.uk/government/consultations/changes-to-financial-support-for-solar-pv

Answered by

Department for Energy and Climate Change