News Article
Solarcentury: ROC Rates For Solar Better Than Expected
The Department for Energy and Climate Change (DECC) announced smaller than expected cuts in its support for solar PV projects larger than 50kWp.
The new rates from 2013-17 are expected to deliver steady growth in the large-scale solar PV sector.
Ground-mounted projects will receive 1.6 Renewables Obligation Certificates (ROCs) per megawatt-hour (MWh) from April 1, 2013, compared to the current level of 2 ROCS.
A brand new building-mounted band has been set at 1.7 ROCs in 2013/14, reflecting the higher costs involved in that sector.
Frans Van Den Heuvel Solarcentury Chief Executive said:
"After the uncertainties of 2012, this is good news. We welcome the fact that the government has listened to the industry and that it is introducing new ROC rates that will enable us to grow with confidence in 2013/14. The new rates are tough but workable. Today's decisions means solar is still a good investment in the UK".
The decision includes no additional review mechanism beyond that which already exists under the legislation.
The cuts reflect the falling costs of doing solar. In the UK, solar PV is now a cheaper way to generate electricity than off-shore wind, which will continue to receive 2 ROCs until 2015.
With a deployment speed of 6-9 months for 5-10 MW, inclusive of planning, solar PV is dramatically faster to roll-out than other renewables and nuclear energy.
Solarcentury has seen significant business growth as a solar farm EPC contractor and more recently, developer.
Solar projects became viable under the RO scheme in 2010 when the cost of developing solar farms and the price of panels dropped significantly.
According to the national electricity regulator, OFGEM, the ROCs system has added £21 per annum per home. This covers all renewable technologies.
The Renewable Obligation is currently the main financial mechanism by which the UK Government incentivises the deployment of large-scale renewable electricity generation. Support is granted for 20 years. Currently, ROCs have a minimum buy-out value of £40.71 per ROC for the 2012-13 period. Alternatively they are traded on the ROC market, average price for November 2012 was £41.24.
