On December 27, 2012, the United Kingdom's Department of Energy and Climate Change published an update to the "Renewable Energy Roadmap" launched in July 2011. The update recognizes solar photovoltaic ("solar PV") as a "key technology" in UK government policy for the first time. As the UK is not known for its sunny climate, previous policy has focused on other technologies, such as wind, hydroelectric, and bioenergy. However, in 2012 the UK solar market was ranked eighth in the world by the European Photovoltaic Industry Association, and according to the Department, solar PV has 82 percent public support. This confidence is reflected in government data: solar PV capacity in the UK increased by more than five times between June 2011 and June 2012.
The new policy direction aims to address some of the previous challenges in developing solar PV. Currently, compared to other key technologies, solar PV has the lowest load factor because there are more grey days than sunny days in the UK. In the update, the range of future deployment has been assessed to be between seven and 20 gigawatts. To maximize deployment, the UK is seeking innovation in cost-effective storage solutions and power grid management. These developments would target a step-change in affordability, introducing the potential for solar PV to be a key source of renewable energy in the UK over the long term.
Developers have previously questioned the longevity of governmental financial support for solar PV. Following a review of solar PV tariffs, changes to the Feed-in Tariff scheme for installations of less than five megawatts and Renewable Obligation Certificates ("ROCs") for larger projects will come into force on April 1, 2013. The changes to the banding under the ROCs system include two new bands: one for building-mounted solar PV and the other for all other types of solar PV above 50 kilowatts in size. Also, Contracts for Difference are to continue beyond March 2017. These protect investors against short-term volatility in electricity prices by providing a steady income through the repayment of excess revenue received during a price spike. The changes have been made with a view to the long-term sustainability of tariffs, taking into account both present and future solar PV costs.
The Department of Energy and Climate Change wants to produce a solar PV strategy in 2013 that adds to the Renewable Energy Roadmap and, according to the recent update, "gives the industry confidence to invest." Through this new strategic approach, the UK government intends to tackle issues such as cost reduction through working with industry and, in some cases, learning from overseas solar PV sectors. The Department intends to establish new structures, such as advisory groups, for communication between government and industry. In addition, the Department intends to work with network companies to ensure clarity for proposed solar PV installations in relation to costs and timetable for their grid connection.
On research and design, the UK Research Council has awarded a £4 million grant to a consortium of researchers in the fields of new materials and systems performance to establish a national solar cell efficiency measurement facility to assist solar PV installations in the UK. In 2013, a further £5 million grant will be awarded to research that aims to reduce the costs of solar energy by optimizing solar PV systems.
The UK government's update highlighted the substantial increase in activity in the UK on installations of more than five megawatts over this coming year and beyond. Globally, solar PV is now the third-largest renewable energy source in terms of installed capacity. The new policy direction evidenced in the update suggests a governmental commitment to increasing the deployment of large-scale solar PV projects in the UK over the long term.
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