If we don’t speak up, solar power in the UK will face a cloudy future

Posted by Richard Casson — 20 October 2015 at 2:56pm - Comments
by-nc-sa. Credit: Greenpeace UK

There was a time when it was rare to see solar power on rooftops here in the UK. Our cloudy skies and the high cost of panels meant the technology was out of reach in all but the sunniest parts of the country.

But over the last decade, things have changed dramatically.

Solar power is now widespread enough for most of us to know someone who's chosen to invest. Solar farms are an increasingly common site too.

So how, in such a short space of time, have things changed so much? 

The short answer is - economies of scale. Over the past few decades, the world has built more factories that produce panels. With the increased volumes of production, these factories have become more efficient and cost-effective, and made panels at a lower cost. With more factories producing more panels, competition started to emerge driving innovation in the manufacturing process - pushing down the cost of panels even further. And because the solar industry has only been around a few decades, there’s been much room for improvements and cost savings.

But vitally, governments around the world - including the UK - have thrown their weight behind solar.
 
In a similar way to how our tax money help keep the North Sea oil and gas industries moving, or how the Conservatives have created a generous tax regime to help fracking get off the ground, government backing has been crucial in giving UK a solar boost in its early days.

But here's the problem. While David Cameron’s government continues to be steady in its support for fossil fuels and nuclear, the solar industry is on increasingly shaky ground. Indeed the entire renewable energy industry is.

Since the Conservative Party was elected in May this year, a number of schemes that had been up and running for years - schemes that aimed to boost renewable energy - have either been placed in review or cut completely.

Behind the majority of these cuts is one man: George Osborne.

From the surprise removal of the Climate Change Levy Exemption (the scheme where business owners could pay less tax on energy through choosing to run their business on renewables), to the closure of the Renewables Obligation (the scheme where renewable energy power producers got a top up of government cash for the energy they produce), the renewable energy industry has taken hit after hit over the past few months.

And right now it looks like the Chancellor is about to deliver a knockout blow to solar.
During the summer government announced a dramatic cut in the feed-in tariffs for solar, inspired by George Osborne’s attack on renewable energy budgets.

In case you haven't heard of it before, the feed-in tariff is a scheme that has helped make solar power a good investment for thousands of people. It means when schools, farmers, homeowners or factory owners put panels on their roofs, they’ll receive a payment for generating power and for feeding surplus energy back into the national grid.

The cost of energy from solar has dropped dramatically. But to get the industry to the stage where it can compete with fossil fuels, government support will be vital for at least the next few years.

With Osborne's cuts on the cusp of being approved, the UK is set to see a huge slump in the number of solar panels installed each year. Even the government’s own data shows that thousands of solar workers look certain to lose their jobs.

The solar industry has made it clear that it wants to be able to stand on its own as soon as possible. Best estimates say that within the next five to ten years, the UK solar power won't need government funds -- simply because the cost of generating power from solar will have fallen so much.

But until that day, government incentives like the feed-in tariff are vital. A sensible plan would be to slowly phase out the tariff as the cost of panels drops, not dramatically slash it overnight. 

The solar industry is worried - really worried - about the impact such drastic cuts to the feed in tariff will have. And struggling in the face of such a huge backtrack in government support to the industry, some leading solar firms have already been forced to close.

John Cridland from the Confederation of British Industry - one the most influential voices in business - has criticised Osborne's plan. Even London Mayor Boris Johnson has spoken out, saying he’s "very concerned" about how cutting the feed in tariff could mean thousands of job losses.

With more and more influential voices raising the alarm, now's our chance to really turn up the volume -- letting the government know just how much we care about the future of UK solar, and that we won’t sit by while Osborne takes a huge gamble with the industry.

UK solar power has been a huge success story. It’s created thousands jobs. It’s helped us take a step toward a future where the country runs on renewable energy - energy that doesn’t fuel climate change. So please, if you haven’t already, spare a few minutes to help protect the industry. Head to this page where you can take part in the government’s consultation on the cuts and speak out against George Osborne’s plans.

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