A government strategy to boost the uptake of solar panels on commercial properties has been welcomed by contractors – but with the proviso that it is supported by an effective Feed-in-Tariff (FIT), changes to planning policy and other measures.
The UK Solar PV Strategy, announced last week by energy and climate change minister Greg Barker, emphasises rooftop solar installations on commercial buildings, including factories, supermarkets and retails parks, to help meet the government’s non-binding target of 20GW of solar energy capacity in the UK by the end of the decade.
It outlines a series of measures to boost uptake, including a plan to extend permitted development rights to allow larger building-mounted systems of up to 1MW; to work with industry to drive down the cost of solar energy; possible amendments to FITs and the Renewables Obligation to incentivise take up; and a programme to install 1GW solar PV generating capacity on government-owned buildings, led by DECC and the Cabinet Office.
Responding to the strategy, Steve Green, head of sustainability at construction and support services contractor Lakehouse, said:“We are very supportive of the government’s new roadmap and any installation above 50kW, ie above micro-generation level but below large-scale wind farms, can provide huge opportunities for contractors like us.”
“However, we want to see less rhetoric and more action with consistent policies in place that enable us to invest in a sensible manner. We would be reluctant to invest in an FIT-based scheme without being certain it will remain consistent, the government cuts to the FIT at back end of 2011 were a real issue for us and several multi-million-pound projects had to be stopped as a result. Similarly, the Energy Company Obligation [programme] was announced over a year ago and has already been subject to changes.”
Jaguar Land Rover has installed a 5.8MW system comprising more than 21,000 photovoltaic panels at its plant in the west Midlands
Paul Joyner, managing director of SBS, part of the Travis Perkins Group, was optimistic about the strategy, saying: “We welcome the proposals contained in the new UK Solar PV strategy. A long-term commitment from the Government will build confidence amongst installers to invest in skills and accreditation, and within the supply chain to invest in product innovation.
"However, our experience with commercial property PV installations suggests there can be practical difficulties in allocating costs and benefits between the tenant and landlord. For example, FIT payments currently run over twenty years while a typical commercial lease is much shorter. Any Government help in this area would be positive.”
Barker claims the solar strategy could have huge potential as an estimated 250,000 hectares of south-facing commercial rooftops are available. Several large solar PV arrayss have been unveiled in the UK recently, including systems at Jaguar Land Rover, Toyota and Southend Airport. But Britain still lags behind the US where companies such as IKEA, Walmart, Costco, and Apple have helped contribute to a total 3.5GW of commercial solar capacity.
The strategy commits the government to working with business to deliver further solar cost reduction, technology and finance innovation, improvements to the supply chain, and increased access to skills and training across the industry. In addition, as part of the strategy the government plans to retrofit up to four million panels on up to 24,000 schools in England and Wales.
DECC said it will work with the DCLG on extending permitted development rights in England for building-mounted solar PV to rooftop systems up to 1MW, with a consultation on this expected over the summer.
Steve Green at Lakehouse welcomed this move. “Streamlining planning is vital as it is often planning and the perceived risk of doing this type of work that prevents clients from pursuing a scheme, rather than the financial viability.”
Meanwhile, others have voiced concern that the shift in focus from solar farms to rooftop arrays could undermine the solar farm market. The DECC says itself in the report that public support for solar is starting to erode because some solar farms have been sited “insensitively” and that solar farms can “have a negative impact on the rural environment if not well-planned and well-screened”. Friends of the Earth has also warned that without more ambitious policies the government could struggle to achieve its 20GW goal.
