The Government has opted to give greater incentives for solar projects on buildings rather than those on the ground.
It’s latest announcement, designed to give certainty on projects supported under the Renewables Obligation, states that building-mounted solar PV projects will receive higher rates than ground-mounted ones. It hopes this will encourage the installation of solar projects at large factory or warehouse buildings, making companies consider solar PV as a serious option for meeting their power needs.
Harnessing the power of the sun can boost energy supplies
The Renewables Obligation is a financial mechanism that the Government incentivises the deployment of large-scale renewable electricity generation. Support is granted for 20 years, balancing the need to provide investors with long-term certainty with the need to keep costs to consumers to a minimum. It is currently worth around £2 billion a year and has been extended to 2037.
Solar power developers can choose between the Feed in Tariff scheme and the Renewables Obligation for projects between 50kW and 5MW.