Skip to main content

Solar Power: Renewables Obligation

Question for Department for Energy and Climate Change

UIN 8885, tabled on 4 September 2015

To ask the Secretary of State for Energy and Climate Change, what estimate she has made of typical annual household bills saving that will result from her Department's proposal to close the Renewables Obligation to rooftop and ground-mounted solar projects below 5MW in size from 1 April 2016 in (a) 2015-16, (b) 2016-17 and (c) 2017-18.

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