Could a cyber attack bring down the energy grid?
On Friday October 21st, people tried to log on to Twitter. The site was down. Cyber hackers had crashed the wo...Read More
Energy secretary Amber Rudd is set to cut solar power subsidies again. With renewable energy increasingly important in the UK, how will this affect businesses?
Despite the UK’s temperate climate, solar power has rapidly become popular. Government figures from 2014 show almost 650,000 solar installations generating a potential over 5,000MW installed (although the totals will have since increased). The UK installed more solar panels than any other European country last year.
Much of this is due to Government subsidies: initial payments of 43p per kWh – around nine times the wholesale rate – encouraging both small and large scale investments.
While this funding initially made sense due to the expense of solar panels, these costs fell as manufacturing became more sophisticated (much coming from China), making take-up greater than expected.
An era of austerity saw greater attention paid to renewables spending, especially given a lack of proper energy storage. The Government has cut subsidies by more than 70% and the UK Department for Energy and Climate Change (DECC) continues its attempts to cut spending, especially after it was revealed in July to be facing a £1.5 billion overspend by 2020/21.
The new Tory Government has prioritised gas and warned that renewable energy – singling out wind turbines – will no longer see the same level of support. Rudd, who recently pushed forward with new licences for shale gas ‘fracking’ explorations, has now talked of putting the brakes on the development of UK solar energy.
According to the Sunday Times, the feed-in tariff (FiT) for solar electricity, which is the main source of remuneration, could be cut by as much as 50%. This in addition to the proposed closing of the Renewables Obligation (RO) scheme for new solar projects from April 2016. A consultation on the FiT is expected to present its results in early September.
A coalition of 100 organisations recently wrote to Prime Minister David Cameron calling on him to support small-scale renewables. The signatories expressed surprise and concern at “a succession of recent announcements – from sudden changes to the renewable energy market, to scrapping the Zero Carbon Homes initiative and the absence of energy efficiency schemes – which undermine Britain’s position in the run-up to the climate talks in Paris.”
Renewable energy has made up an increasing amount of electricity for business. The subsidies have often made for an attractive combination of environmental responsibility and cheap electricity for business.
The planned change in rules could see growth in solar energy begin to give way to gas generation. Yet, in the short term, business electricity suppliers could be looking to secure customers for their solar generated power. UK small to medium sized businesses could actually be in a stronger position, at least in the short term.
To get an idea of what deals – including renewables-based business electricity tariffs – are on offer, we can offer a comprehensive comparison and switch in just 20 minutes. Just fill in our simple form (also at the top right of this page) or give us a call on 0330 0100 251 now.
Competent and courteous service.
"Marie was knowledgeable and helpful. I feel able to recommend the service given without reservation. David Slesenger"This review was posted by David Slesenger on the 16th of August 2016
"Nadia was very helpful"This review was posted by Robin on the 16th of August 2016
Excellent Customer Service *****
"Jonathan Burgess is an asset to Switch My Business. He made me feel at ease and was more than helpful at all times. He made regular contact and guided me through the whole process which made switching a breeze. I just wish there were more customer service advisers like Jonathon whose friendly and happy demeanour make your day a much nicer one. Well done Switch my business and more importantly thank you Jonathon for all your hard work! Maria Owen Lodgecrest"This review was posted by Maria Owen on the 17th of August 2016
EXCELLENT CUSTOMER SERVICE
"I totally agree with a customer maria owen,Jonathan Burgess was such a pleasure dealing with and is truly a asset to the company, he made it very easy to switch my electricity companies, Jonathan Burgess was very helpful, easy to talk to it was like talking to a friend not just a customer adviser. I would definitely recommend switchmybusiness and try get hold off Jonathan Burgess if possible and have the same excellent service as I did. Rajan Shanan"This review was posted by Rajan Shanan on the 19th of August 2016
Excellent and very helpful
"Arron who dealt with my switch of energy and gas has been a huge help and extremely efficienct and easy to deal with. Despite British Gas throwing obstacles in the way at every turn he has doggedly stuck to his task and saved the day. Thanks Arron."This review was posted by Rod Pryce-Jones on the 19th of August 2016