Warning over solar subsidy cuts

Government proposals to cut subsidies to large solar farms could be extremely detrimental for the South West, according to one of the Westcountry’s leading renewable energy lawyers.

In a move which would end the current system two years early, the proposal is to force owners of solar power installations which are larger than 5 megawatts to compete with other renewable energy technologies for financing.

Sonya Bedford a partner and head of renewable energy at Stephens Scown LLP said: “This could be potentially devastating for the Westcountry. With the highest irradiation levels in the UK, many solar developers have chosen to invest here, creating jobs and boosting our economy at a time when some other sectors have been struggling.

“Solar is one of the most popular renewable energy technologies and government support has meant that prices have been consistently coming down. If it is introduced this change could result in solar going up in price, reducing competition and ultimately costing the consumer more.

“Investors will be reading this news and questioning whether they should be choosing to invest in UK solar. That is bad news for the economy as a whole.”

Commenting on the future, Sonya added: “We are assisting clients in dealing with this news and helping model sites for operation under contracts for difference, it is important to us to ensure the large scale solar industry continues to contribute to renewable generation in the South West and beyond.”

Currently solar installations are subsidised through the Renewables Obligation. The DECC proposals, which were announced this week, would see that scheme end in April 2015 and be replaced by a new system where large solar installations would compete with other technologies, including wind and hydro-electricity for payment under the contracts for difference regime.

More information on the proposals is available on the DECC website.

Stephens Scown has over 40 partners and 250 staff across its offices in Exeter, Truro and St Austell. For more information visit www.stephens-scown.co.uk