EurObserv'ER logo

Photovoltaic energy in the United Kingdom

General
The Renewables Obligation (RO) is the main support scheme for renewable electricity projects in the UK. It places an obligation on UK suppliers of electricity to source an increasing proportion of their electricity from renewable sources. A Renewables Obligation Certificate (ROC) is a green certificate issued to an accredited generator for eligible renewable electricity generated within the United Kingdom and supplied to customers within the United Kingdom by a licensed electricity supplier. One ROC is issued for each megawatt hour (MWh) of eligible renewable output generated. The Renewables Obligation Order came into effect in April 2002, as did the Renewables Obligation (Scotland) Order. The Renewables Obligation (Northern Ireland) Order came into effect in April 2005.  These Orders have been and are subject to regular review. The Orders place an obligation on licensed electricity suppliers in England and Wales, Scotland and Northern Ireland to source an increasing proportion of electricity from renewable sources. In 2005 - 2006 it was 5.5 per cent (2.5 per cent in Northern Ireland). In 2006 - 2007 the obligation is set at 6.7 per cent (2.6 per cent in Northern Ireland). It was 7.9% for 2007/2008, and it will be up to 14.5% in 2015. Suppliers meet their obligations by presenting sufficient Renewables Obligation Certificates (ROCs). Where suppliers do not have sufficient ROCs to meet their obligations, they must pay an equivalent amount into a fund, the proceeds of which are paid back on a pro-rated basis to those suppliers that have presented ROCs. The value of ROCs is paid to the producer in addition to the market price of electricity.

According to the Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sources the target for the share of energy from renewable sources in gross final consumption of energy in the year 2020 for the United Kingdom is 15% (in the year 2005 the share was 1.3%). The Directive has a mandatory 10 % target for transport to be achieved by all Member States, which refers to renewable sources as a whole, not biofuels alone.

Renewable energy projections according to the National Renewable Energy Action Plan for the United Kingdom
The National Renewable Energy Action Plan (NREAP) for the United Kingdom was submitted in July 2010. The target according to Annex I of Directive 2009/28/EC is 15% for the year 2020 and the projected NREAP share in that year exactly matches the target.  According to the projection, the most important contribution in the year 2020 is expected from wind power (78.3 TWh or 6730 ktoe, 33% of all renewable energy). Second important contribution is expected from biomass (renewable heating and cooling) (3914 ktoe, 19% of all renewable energy). The third largest contribution is from biodiesel (renewable transport) (2462 ktoe, 12% of all renewable energy). Wind power contributes in the year 2020 with onshore wind (14.9 GW and 34.2 TWh) and offshore wind (13.0 GW and 44.1 TWh). For solar photovoltaic the 2020 contribution is projected to be 2.7 GW (2.2 TWh). For solar thermal the 2020 contribution is projected to be 34 ktoe. The two most important biofuels are projected to contribute 2462 ktoe (biodiesel) and 1743 ktoe (bioethanol / bio-ETBE) by 2020. The renewable electricity production from solid biomass amounts to 20.6 TWh (1770 ktoe) and for biogas it is expected to be 5.6 TWh (479 ktoe). The consumption of renewable heat is expected to amount to 3612 ktoe for solid biomass and 302 ktoe for biogas.

From 1 April 2010 householders and communities who install low carbon electricity technology such as solar photovoltaic (pv) panels and wind turbines up to 5 megawatts will be paid for the electricity they generate, even if they use it themselves. The level of payment depends on the technology and is linked to inflation.

Renewable Electricity: Photovoltaic Power

The Feed in Tariff (FiT) scheme (<5 MW)


The Feed in Tariff scheme (FiTs) was introduced on 1st April 2010 and is a financial support scheme for eligible low-carbon electricity technologies, aimed at small-scale installations up to a maximum capacity of 5 Megawatts (MW). FiTs support new anaerobic digestion, hydro, solar photovoltaic and wind projects up to that 5 MW limit, by requiring electricity suppliers to make payments (generation tariffs) to generators based on the number of kilowatt hours (kWh) they generate. In addition to the tariff paid for generation, a fixed export tariff of 3p per kWh is paid for electricity generated that is not used on site and exported to the national grid. The scheme will also support the first 30,000 micro combined heat and power (CHP) installations with an electrical capacity of 2 kW or less, 


Technology

Scale

Tariff level for new installations in period (p/kWh) (NB : tarifs will be inflated annually)

Tariff life time (years)

Year 1

1/4/10-31/3/11

Year 2

1/4/11-31/3/12

Year 3

1/4/12-31/3/13

Anaerobic digestion

£ 500kW

11.5

11.5

11.5

20

Anaerobic digestion

>500kW

9.0

9.0

9.0

20

Hydro

£ 15kW

19.9

19.9

19.9

20

Hydro

>15-100kW

17.8

17.8

17.8

20

Hydro

>100 kW-2MW

11

11

11

20

Hydro

>2MW-5MW

4.5

4.5

4.5

20

MicroCHP pilot*

£ 2kW*

10*

10*

10*

10

PV

£ 4kW (new buildt)

36.1

36.1

33

25

PV

£ 4kW (retrofit)

41.3

41.3

37.8

25

PV

>4-10kW

36.1

36.1

33

25

PV

>10-100kW

31.4

31.4

28.7

25

PV

>100kW-5MW

29.3

29.3

26.8

25

PV

Stand alone System

29.3

29.3

26.8

25

Wind

£ 1.5 kW

34.5

34.5

32.6

20

Wind

>1.5-15 kW

26.7

26.7

25.5

20

Wind

>15-100 kW

24.1

24.1

23

20

Wind

>100-500 kW

18.8

18.8

18.8

20

Wind

>500 kW-1.5MW

9.4

9.4

9.4

20

Wind

>1.5MW-5MW

4.5

4.5

4.5

20

Existing microgenerators transferred from the RO

9.0

9.0

9.0

To 2027

*Note the microCHP pilot support up to 30 000 installations with a review to start when the 12 000 installation has occured

**Definitions of terms used are included with the table on page 47


The Low Carbon Buildings Programme (LCBP) provides grants for the installation of microgeneration technologies in a range of buildings to include households, community organisations, public, private and the non-profit sectors. Solar photovoltaic systems may receive a grant ofmaximum £2,000 per kW of installed capacity, subject to an overall maximum of £2,500 or 50% of the relevant eligible costs.

In England, changes to permitted development rights for domestic microgeneration technologies introduced on 6th April 2008 have lifted the requirements for planning permission for most solar installations. Roof mounted and stand-alone systems can now be installed in most dwellings, as long as they respect certain size criteria. Exceptions apply for Listed Buildings, and buildings in Conservation Areas and World Heritage Sites. In Wales, Scotland and Northern Ireland, the devolved governments are currently all considering changes to their legislation on permitted developments, to facilitate installations of microgeneration technologies, including solar systems. Legislation is expected in all three countries later in 2008.

Future programme changes expected
No information available.

Sources
Renewables Obligation, http://www.ofgem.gov.uk (sourced November 2008) 

Renewables Obligation - Interim Total Obligation Levels For 2007-08, August 5, 2008, http://www.ofgem.gov.uk

Department for Business Enterprise & Regulatory Reform (BERR), Low Carbon Buildings Programme, http://www.lowcarbonbuildings.org.uk (sourced November 2008)

The National Renewable Energy Action Plans (NREAPs) are all published on the Transparency Platform on Renewable Energy: http://ec.europa.eu/energy/renewables/transparency_platform/action_plan_en.htm (sourced July - December 2010)

Renewable Energy Projections as Published in the National Renewable Energy Action Plans of the European Member States, http://www.ecn.nl/nreap (sourced December 2010)

 Interactive EurObserv’ER Database
http://www.eurobserv-er.org
Last update: March 2011


This information can be referenced without permission provided that the source is mentioned completely and correctly: 'Interactive EurObserv'ER Database, http://www.eurobserv-er.org (date of last update)'

Suggestions for improvements to the policy description can be sent to EurObserv'ER by e-mail: project@eurobserv-er.org

The EurObserv'ER barometer is a project supported by the European Commission within the DG ENER 'Intelligent Energy Europe' programme and by Ademe, the French Environment and Energy management Agency. The EurObserv'ER Barometer is the result of the investigation and research work of its authors. The European Commission is not responsible for any use that may be made of the information contained therein.