Renewables Obligation

The Department of Energy and Climate Change (DECC) has announced separate bands of support under the Renewables Obligation (RO) for commercial-scale solar photovoltaic (PV) and biomass schemes.  This should provide some certainty to the industry. 

Commercial roof-mounted solar PV panels are to receive higher government subsidies than ground-mounted projects.  This decision comes as part of the Government’s response to recent consultations.  The RO for ground mounted PV will be set at 1.6 ROCs (Renewable Obligations Certificates) per MWh as from next year (higher that the 1.5 ROCs per MWh initially proposed in the consultation) although industry had wanted 1.8 ROCs per MWh.  The rate will fall annually by 0.1 until 2017.

To stimulate commercial roof top solar systems the RO for this category will be higher.  As from next year it will be 1.7 ROCs per MWh reducing by 0.1 each year until 2017.  In 2017 it is proposed that the RO will be replaced by a new system of Feed-in Tariffs with Contracts for Difference (FiT CfD) as outlined in the Energy Bill.

DECC has also announced a new subsidy for dedicated biomass plants.  These will receive 1.5 ROCs per MWh from April, capped at 400MW.  After this level has been reached the Government may consult on removing the guaranteed incentives for any new plants.   This may provide a boost for such plants and thus for those growing biomass crops to supply them.