Thank you for contacting me about solar energy and funding for solar farms.
Scaling up cheap renewables presents one important way in which to ensure our energy independence and green transition over the coming years. It is for this reason that I strongly welcome that, as part of the new Energy Security Strategy, ministers are looking to increase the UK’s current 14GW of solar capacity, which could grow up to five times by 2035. To support solar deployment, the Government are consulting on the rules for solar projects. I understand that consultations will include changes to encourage deployment, while ensuring communities continue to have a say and environmental protections, including around land use, remain in place. I further welcome Government plans to review permitted development rights to make it easier for rooftop solar to be deployed on households, as well as public and commercial buildings.
There are several other initiatives that ministers have set out in order to achieve net zero by 2050, one of which is to increase the energy efficiency of houses, schools, hospitals, and other buildings across the country – pledging £9 billion to the cause. Recently, the Department for Business, Energy and Industrial Strategy announced a £562 million boost to make 50,000 households in social housing and domestic properties warmer and greener, including the installation of solar panels.
The Government is also extending the VAT relief available for the installation of energy saving materials (ESMs). This relief is being increased further by introducing a time-limited zero rate for the installation of ESMs. A typical family having roof top solar panels installed will save more than £1,000 in total on installation, and then £300 annually on their energy bills.
More specifically, the Government supported over 830,000 small solar projects through the Feed-in Tariff between 2010 and 2019. This has helped cut the cost of household solar panels by more than half since 2011. Now, through the Domestic Renewable Heat Incentive, households that use solar water heating could get money towards renewable heating costs in their home. I am pleased that more than £1 billion of the green recovery fund has been set aside to upgrade the efficiency of our buildings’ energy and heat. Additionally, the Smart Export Guarantee (SEG) supports small-scale low-carbon electricity generation. The SEG gives small generators, including homes with solar panels, the right to be paid for the renewable electricity they export to the grid.
Moreover, the Contracts for Difference scheme is a Government-led initiative that supports low-carbon electricity generation. This policy provides the developers of projects with high upfront costs and long lifetimes with direct protection from volatile wholesale prices to incentivise investment in renewable energy such as solar farms. The next bidding round of the scheme is now open and for the first time since 2015, established technologies, including onshore wind and solar, will be able to bid. The Government is seeking up to 12GW of electricity capacity from these technologies, with a £285 million budget. This will support investment in all parts of Great Britain, particularly Scotland and Wales.
Again, thank you for taking the time to write. If you require any further assistance, then please do not hesitate to get in touch.
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