Governmental Direction

Everyone who remembers the poor handling of the UK Feed in Tariff will want to use that as the basis for suggesting that the UK government has been remiss in their support of the UK solar market. While it is true the changing nature of that subsidy left many out of pocket and even more unsure of the financial realities of the UK solar market, it would be premature to see it as the defining moment of a government who have taken on board, like the rest of the world, that energy security and autonomy is key for the successful future of any region.

"We want the UK to be the most energy efficient economy in Europe", stated Gregory Barker in a recent speech at the Energy Efficiency Mission Launch.  While it would be easy to dismiss such comments as political double speak it is interesting to look at. Barker's recent comments and how consistent he remains in his desire to push for energy improvements in the renewable and the solar scheme. This is the man who was sneered at when he first proposed 22GW by 2020, including segments of the solar industry, but has stuck by those words and those plans. None of this is to suggest that this particular political party is doing better than any other as the ideas for such energy improvements are universal and pursued by whichever group is in power around the globe. 

Even as the FiT scheme was been downgraded Barker made a number of speeches where he encouraged companies to seek out alternative subsidy options. Not everyone heard his comments in their haste to scream discontent but there is now ample evidence that there was still plenty of financial support to the growing industry. While some lament the changing industry it would be remiss to suggest it is collapsing as some are attempting to. The overall industry continues to grow at an increasing rate. 

Barker continued in that speech, "˜We want the UK to be the most energy efficient not because it is nice to have but because it is an essential part of how the UK is going to compete in the global race, how we are going to have competitive onshore manufacturing and rebuild our industrial base. This is all about competition. This is about growing efficiency, not just in the energy sector but as part of a holistic approach to the wider economy.'

Despite the positive rhetoric even the government has had to admit that the approach to a renewable energy future has been piecemeal with no cohesive approach and every department having its own agenda to tackle the problems. Energy efficiency has been ignored as much as energy autonomy and that has to change from a simple case of common sense for anyone looking at the global challenges facing resources in a world whose market place and appetites are rapidly growing.

Solar is but a part of the renewable and sustainable energy landscape and governments have to contend with competing technologies demanding their perceived piece of the pie. That said Barker has consistently pushed a strong outcome for solar and continues to do so. Recently he attended the Solar Roadshow and gave the following speech.

"Solar PV is not only exciting, but it is affordable, bankable and ready to go - wherever you are. The industry has come a massive distance in the last two years.At times this journey has been difficult, but the UK solar industry can now benefit from the mechanisms, ROC and FiT, that have been put in place to give industry the transparency, confidence and longevity they need to build deployment.

Last month we reached a huge milestone. Solar is now, for the first time, a priority industry in the Government's Renewables Roadmap. It is recognised as having a future as one of the key renewable technologies in the UK's energy mix. And solar, along with other industries, will benefit from the Coalition Government's new Energy Bill designed to put in place measures to attract the £110bn investment needed to replace current generating capacity and upgrade the transmission and distribution grid by 2020.

This was recognised by the Prime Minister when he said, "our reformed feed-in tariff is helping drive the growth of a vibrant and entrepreneurial decentralised energy sector, providing communities and business with a range of innovative clean technologies".

He also re-stressed this Government's commitment to the green agenda. He said "When I become Prime Minister I said I wanted Britain to have the greenest government ever and I am as committed to that as I was then. But I want to go further".A leaner, keener industry can build on these stable foundations. 

In December the UK saw over 1500 installations in one week alone "“ that's 5MW "“ under the FiT scheme. In the first week of January there were 1549 installations, almost 6MW. We have now seen over 400,000 installations and are currently seeing significant additional PV deployment under the ROC regime.

We stand of the threshold of 2GW. So let us unite together behind solar coming of age and the benefits it brings to economy, our communities and our renewable energy mix. But this is just the beginning. By the 2020s I want and believe solar to provide up to 20GW of our energy needs. The potential is clearly huge.

We have seen dramatically falling costs, that we need to drive down further to ensure solar PV plays its critical role in helping the UK meet its vital renewable energy targets.

I have said it before and I will say it again, we in the Coalition Government are absolutely committed to working with you to make that happen, but it is a two-way street. A real collaboration is needed; and you must play your part.

Collaboration and partnership between stakeholders is key, if we are to continue to drive costs down. It is vital to have a joined up approach in future energy development in order to achieve the correct secure and economic outcomes.

A key part of that collaboration is Government's commitment to work in partnership with you to drive the sector forward.

We will be publishing a UK Solar Energy Strategy later in the spring to set out how we planning to achieve that together. We will create a new Strategy Group to ensure that the sector is actively contributing to the policies which affect it.

We are also doing practical work, to support this high-level policy work. I am delighted to announce that we are publishing a new MCS Guide to Solar PV Installation. 

This should become the "go-to" guide for PV system installers. Its widespread use will improve the reliability of installations, increase customer confidence in PV and help us all benefit from quality focussed engineering solutions. I pay tribute to those who have worked on this guide over the last few months.

We will be helping you promote solar PV both at home and abroad, ensuring that you can all capitalise on the existing commercial opportunities which are out there "“ and helping you create new ones too.

I am bringing together members from the sector with key Registered Social Landlords in the House of Commons to show how to place solar at the centre of big organisations' business planning. Over the next few weeks I'll be hosting similar meetings with Local Authority Chief Executives and the building sector.

Then there's the Green Deal which we launched. This represents a fundamental shift in how we look at energy demand in the UK. 2013 is an important year for the economy, as we do everything we can to drive responsibly sustainable growth in the economy. I want solar to be part of Britain's growth narrative.

But what does that mean in practice for everyone here? There are real business opportunities for you in the Green Deal and you will need to seize them with both hands. You should:

Market Solar PV as an energy saving option by placing yourselves at the centre of your local Green Deal assessment and delivery networks. Diversify and exploit new business opportunities.

Offer companies "“ from SMEs to FTSE giants "“ solutions to generating more of their own electricity, building greater resilience and certainty into their business models.

I know the sector is already working to lay the foundations needed for growth. The recently launched National Solar Centre will play a pivotal role in supporting the sector's growth "“ driving forward innovation and standard setting which will increase confidence in the sector's ability to deliver. 

You can see that the frameworks which are now in place as the new FiT and RO bands bed in, and the Green Deal transforms the way in which the public looks at energy efficiency and generation will be a firm foundation for sustained growth of solar PV in the UK. But that's not all. We are also seeing more and more opportunities emerge abroad.

Recently I met the Kenyan Energy minister, who is keen to get British companies into the Kenyan market.  There's a new feed in tariff of 12 cents per KwH, guaranteed for 20 years, and the Kenyans are allocating 40MW blocks of land in North Kenya to build solar farms. 

The government of India is planning to tap the most talked about solar rooftop segment potential (estimated at 92.7GW) in a big way, adding at least 1000MW capacity by 2017 100,000 villages in India are not connected to grid and 400 million people don't have access to reliable electricity.

Due to the rising power deficit year over year, India faces the biggest blackout ever. The Solar Rooftop Plan seems to be a plausible solution, which may largely improve power accessibility. 

These are just two examples but the UK solar sector are quickly developing the expertise to disseminate in global markets. We are working with colleagues in the FCO and UKTI to help British companies make the most of these opportunities.

As we rise to meet the road ahead and the challenges of the coming years we must continue to collaborate and innovate to put in place the foundations for a buoyant PV industry. We will continue to encounter challenges and there are many bridges we will have to build and cross together.

But we have started paving the way and have put together a pathway for success, starting with the new incentives which are now in place provide the, and then moving on to deliver the vision we outlined in the Roadmap. 

The solar strategy we are working on will take this further and look at how we can tackle the barriers that lie ahead and how we can work together to break these down. We look forward to hearing your ideas and working with you to deliver this in the Spring. 

This is just the beginning of our journey together as we set our sight set on the future. A future where solar can help power our vehicles, heat our homes and deliver a diverse, low-carbon and secure energy mix. We must unite together behind solar, sending out the message: solar is a great deal for all of the UK.

It is safe, it is clean, it is reliable, it is accessible, it is increasingly affordable and it is a totally scalable technology. This is the message we are sending out loud and clear.

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