Solar Energy

Solar costs expected to fall as low as £40/MWh within 12 years

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The Solar costs expected to fall as low as £40/MWh within 12 years which is by 2030, this is according to the latest assessment done by STA (Solar Trade Association). The organization body said in its earlier assessment from the year 2014 that predicted the way of levelling the cost of the energy to mark £80/MWh by the year 2019, has then come out to conserve it with a figure which is now expected to be at £50-60/MWh.

This becomes considerably below the year 2016 prediction by the Department of the Business, Industrial and Energy Strategy of the year 2020 to be £67/MWh. Although the costs fluctuate considerably from one site to another, STA reported that the findings confirmed that under the long-term PPAs (power purchase agreements) solar may soon be the cheapest generation know-how in the UK.

Actually, this is another instance the fast-moving market for solar power outpacing official cost analysis according to Nicholas Gall who is the STA policy analysis. He said that our goal is to offer the accurate assessments of where the large-scale solar cost stands as we start 2019, where there is a hope to see the revival for the UK solar market for the large-scale.

“We request all the organizations to conduct the low-carbon or the energy cost analysis to use the updated industry data, where it comes right from our own members’ experience in the UK market,” said Nicholas Gall, the STA policy analyst. “We also request the decision makers to understand how efficient policy framework enables the lowest costs possible for the solar that will greatly benefit the consumers.”

Regardless of losing the access of the new support under Renewable Obligation schemes and excluded from the contracts for various auctions ever since the year 2015, STA anticipates the pipeline of the large-scale solar project to grow considerably in the year 2019, partly because of the global surplus of the photovoltaic solar panel.

Nevertheless, STA said that the prospects for a sector are being hampered of the gem’s recently suggested changes to residual the network charging, doubt over the carbon price following the Brexit and the ongoing grid constraint. The industry associations have called for the introduction of the technology-neutral price floor connections for the different auctions together with the charging reforms and network access and the exemptions from Climate Change Levy to finance new-build projects through the corporate PPAs.

The chief executive of STA by the name Chris Hewett said: “We are having the clear message for the government and the corporate energy buyers at the moment: the UK solar electricity which is now at a cost competitive from the fossil fuel. By the establishment of the correct policy framework for storage and solar which include the expediting the smart, mobile energy system, the government can allow the technology to realize the full potential to deliver affordable and low carbon for the future energy system.”

The STA has continued and said that the deployment of the large-scale solar can be nudged more with some tweaks to the existing energy policy. This was by citing the analysis by a committee on the Climate Change that has pointed toward the requirement of up to 50TWh of the clean electricity generation for 12 years to come, so as to meet the binding reductions emissions targets and the impacts on solar panel cost UK levels.