Scotland gives solar support a lifeline

The Scottish government has boosted solar prospects in the country by committing to retain so-called grandfathering under the Renewables Obligation (RO).

This is in contrast to a proposal from the Department of Energy and Climate Change (Decc) for England and Wales under which the removal of grandfathering will mean that projects of up to 5MW seeking RO support would no longer have a guarantee of support levels through the life of a project.

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Scottish Energy Minister Fergus Ewing cited the need for “clarity and certainty” for solar projects to attract funding and reach financial close.

The Scottish government has also announced it will not be reviewing the level of RO support for solar prior to the early closure of the scheme, as is being proposed in England and Wales in what is called a “banding review”.

This would help remove uncertainty and boost investor confidence for projects in Scotland, said the Solar Trade Association (STA) Scotland.

“Solar projects in Scotland now know what level of support they are going to get, and that they will get it for the full 20 years,” said STA Scotland chairman John Forster

“It won’t be possible to cut support for Scottish projects down the line in, for example, year 15 of 20. We particularly appreciate how Minister Ewing has moved as quickly as possible in making this decision, allowing solar businesses to plan ahead and focus their efforts on any Scottish projects in the pipeline.”

“Grandfathering” is the guarantee that the level of support provided per unit of electricity will not change throughout the lifetime of a solar installation once it has been built and connected, and once the investment has been made.

The Solar Trade Association is calling for the Department of Energy and Climate Change to re-consider its proposal to remove this guarantee in England and Wales, which it said would be a serious blow to investor confidence.

RO solar projects in England and Wales faced three layers of challenge and uncertainty, said an STA Scotland spokeswoman:

• Proposed end of the Renewables Obligation for solar from 1 April 2016
• End of grandfathering  – no guaranteed support level
• Banding review later this year for projects completing in January to April next year