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Solar thermal 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.

In August 2008 the Energy regulator Ofgem has published interim information on the size of the Renewables Obligation for the 2007-08 obligation period, which finished in March 2008. According to this statement, the total Renewables Obligation on electricity supplied to customers across the UK is 25,477,265 MWh. On electricity supplied in England & Wales it is 22,784,988 MWh, on electricity supplied in Scotland it is 2,456,216 MWh and on electricity supplied in Northern Ireland it is 236,061 MWh. Electricity suppliers must comply with their Renewables Obligations for 2007-2008 before 1st September 2008. They can do this by either presenting Ofgem with Renewables Obligation Certificates (ROCs) to the value of 7.9 per cent of electricity supplied to customers, by using a buy-out clause which allows them to pay £34.30 per MWh for any shortfall or by using a combination of ROCs and buy-out.

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.

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 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.

Renewable heat: solar thermal
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 thermal hot water systems may receive an overall maximum of £400 or 30% of the relevant eligible costs. The householder stream of the Low Carbon Buildings Programme has been extended for applications until June 2010. LCBP Phase 2 is part of the UK Environmental Transformation Fund (ETF), a joint DECC/Defra fund to bring forward the demonstration and deployment of low carbon energy and energy efficiency technologies.

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
Following the Budget announcement on 22 April 2009 an additional GBP 45 million has been allocated to the LCBP. LCBP Phase One will receive an additional £10 million of funding. This sees the current programme extended from July 2010 to April 2011. 

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 June 2009)

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: December 2010

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