New ROC rates for solar better than expected
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”.
Today’s 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 is the UK’s dominant player in solar PV, having 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.
Lindsey Bredin, PR Manager
077 177 65873
Solarcentury is one of the most respected solar companies in the world. Founded in 1998, we have been around since the early days of the solar industry and have been part of the evolution that has made PV the attractive investment it is today. We have put solar on a greater variety of sites than any other company in the industry, and have won multiple awards for product innovation.
We work directly with our clients to design and install commercial, industrial and utility scale solar. We also supply our products and services to installers and distributors. All of our customers benefit from our experience in terms of engineering quality, superior yields and sheer breadth of deployment.
We are a big believer in helping solar PV change our world for the better and contribute 5% of our net profits every year to the charity we founded, SolarAid, which aims to eradicate kerosene lamps from Africa by 2020.
Solarcentury has offices in the UK, Italy, The Netherlands and a growing presence in Africa and Latin America.
Notes to editors
In November 2020 Solarcentury joined forces with Statkraft – read the press release here solarcenturyafrica.com/statkraft-acquires-solarcentury
About Solarcentury: Established in 1998, Solarcentury is a leading global solar power company that develops, constructs, owns and operates utility-scale solar and smart technology. Solarcentury is known internationally for developing and building some of the largest utility-scale solar projects in the UK, the Netherlands, Spain, Kenya and Mexico, including pioneering projects such as the world’s first solar bridge at Blackfriars Station in Central London.
Solarcentury’s mission is to make a meaningful difference in the global fight against climate chaos by making solar power the dominant energy source worldwide. During Solarcentury’s 22-year history the business has helped solar power become mainstream, and our projects have generated 6 billion kWh of clean electricity, saving over 1.7 million tonnes of CO2 emissions.
About Statkraft: Statkraft is a leading company in hydropower internationally and Europe’s largest generator of renewable energy. The Group produces hydropower, wind power, solar power, gas-fired power and supplies district heating. Statkraft is a global company in energy market operations. Statkraft has 4,000 employees in 17 countries. www.statkraft.com
Solarcentury’s press office is available at PR@solarcentury.com.