The Solar Trade Association (STA) is calling on the next government to “hit the ground running” as it stresses the need for the “urgent delivery” of three key policies.
With the UK in the midst of a general election, the STA has outlined three policy recommendations for the next government that would “unlock the true potential” of UK solar.
Firstly, regular Contracts for Difference (CfD) auctions should be held, with solar allowed to participate, a request regularly made by a range of industry organisations, including the Committee on Climate Change and Energy UK.
The auctions should be technology neutral and utilise a floor price mechanism, under which when wholesale prices fall below the floor price, the generator receives a top-up payment. When the wholesale prices rise above the floor again, the generator doesn’t retain the upside until the value of CfD top-ups have been reimbursed.
Investors would then benefit from lower average cost of capital whilst also capturing upside in return for taking on merchant risk, the STA said.
The second recommendation is to amend Ofgem’s remit to align with a 2050 net zero. The regulator must take a "holistic, long-term view" of the requirements of the energy sector to support the decarbonisation and flexibility required for net zero, the STA said.
Lastly, a new strategy for rooftop solar should be adopted, broken down into five suggestions:
These policies would drive the levels of deployment needed to decarbonise the power sector by 2030, it said. Ramping up the uptake of solar throughout the next ten years must form an “essential” part of the next government’s package of net zero measures.
Chris Hewett, chief executive of the Solar Trade Association, said the next decade is going to be “absolutely key” in accelerating towards net zero.
“Whoever wins the election will need to hit the ground running by transforming welcome future targets into urgent, robust action for tackling the climate emergency.
“We are shining a spotlight on the practical policies that will drive the uptake of cost-effective, popular renewables at scale into the 2020s and beyond. We urge all parties to seize the initiative and work with industry to drive these forward.”