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News Release

London

JLL’s Renewable Energy Capital team respond to Government’s proposal to cut subsidies for large scale solar farms

Proposal to cut financial support for solar energy farms in the UK is condemned by green activists and renewable power companies.


London, 14th May 2014: Commenting on the Government’s proposal to cut financial support for solar energy farms in the UK; a move condemned by green activists and renewable power companies, Dane Wilkins, Head of Renewable Energy Capital at JLL, said: “The headline subsidy announcement is a shock for the industry and puts into doubt all projects in the pipeline with expected commissioning dates post April 2015. In proposing to remove the Renewables Obligation (RO) support level for solar project greater than 5MW from April next year the Government has effectively slammed the brakes on large scale solar in the name of safeguarding the levy control framework budget.”

“While developers of large scale solar will still have the option to apply for Contracts for Difference under the new Electricity Market Reform allocation process this is an untested route to market and will need to be scrutinised in much greater detail before investors will commit to this new subsidy mechanism.”

Dane Wilkins, concluded: “The effect of this announcement will be strongly felt by the UK solar industry in the short term particularly for developers who have projects that may not satisfy the onerous criteria enabling them to be considered for support under the RO beyond March 2015. The Government should seriously consider its position on this front to ensure developers who have invested significant time and money in developing projects are not left high and dry in the wake of this unexpected announcement.”