UK Solar PV Funding Drying Up?

UK Solar PV Funding Drying Up?

"The Prime Minister must put his money where his mouth is, and help the UK take a lead in developing a range of renewable technologies that will help combat global warming."

- Catherine Pearce, Friends of the Earth Climate Campaigner

London, England - September 3, 2004 [SolarAccess.com] The UK's fledgling solar energy sector could be killed off because the Government is back-tracking on its funding plans, according to the environmental organization Friends of the Earth. They said two key government funding programs aimed at boosting solar energy in the UK are to be wound down earlier than planned, with little clarity as to what will follow.

Friends of the Earth is calling for a clear strategy for solar energy development - one of the government's largest renewable programs. Later this month Tony Blair is due to give a major speech where he is expected to describe climate change as the world's biggest collective challenge.

The solar photovoltaic (PV) Major Demonstration Programme (MDP) and the Clear Skies Program are due to be wound down early. Phase 1 of MDP, from 2002-5, which is worth £20 million (US$ 35.7 million), was forecast to deliver 9 MW by 2005, or the approximate equivalent of 3,000 domestic roofs. This could have risen to 200 MW by 2012 if the full program was implemented. So far 6MW has been installed.

Friends of the earth is not the only group concerned. Members of Parliament (MP) have also expressed concern about the future of the funding program. Before the Parliamentary recess, 120 MPs signed an Early Day Motion urging continuity of support for the PV industry.

The UK lags behind many countries in Europe and rest of the world when it comes to using solar power technologies - despite UK Government promises to champion renewable energy. Despite a recent legislative defeat in California, solar supporters including the state's Governor are proposing to add solar power to a million homes in the next 10 years. In Germany, 150 MW of solar PV was installed just last year, and 200 MW is expected to be installed in 2004. On 12 separate occasions since 1999, the German program has delivered the equivalent of the UK's three year target in one month.

"Whilst Tony Blair stands on the world stage, championing the fight against climate change, the UK's domestic solar power industry is under threat because of a lack of Government funding," said Friends of the Earth's Climate Campaigner Catherine Pearce. "Germany has installed almost as much PV in one year as we are attempting to achieve in ten - and we are struggling to achieve this. The Prime Minister must put his money where his mouth is, and help the UK take a lead in developing a range of renewable technologies that will help combat global warming."

Although a new plan to replace the current program has been proposed, there are considerable doubts over how much will be given to solar power. Friends of the Earth said the new "technology blind" building integrated capital grant program, proposed in the Government's Renewables Innovation Review, has no clear budget, no clear start date and no clear departmental sponsor. The start date of this new program is allegedly next March/April but with no consultation yet announced, industry believes this would not be possible until next autumn at the earliest. This leaves the industry with a minimum six-month funding gap.

The solution, according to the organization, is a one year extension to the existing programs in order to ensure both continuity of support to these rapidly growing technologies and give Government the necessary breathing space to plan properly, develop and then implement its proposed new scheme, which is due to begin in winter/spring 2005/6.

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