Given the British Government’s recent periodical decreases in the levels of Feed in Tariff support for solar PV projects, the announcement that it is also consulting in reductions in Renewables Obligation support will not come as a surprise. It will, however, remove the "Plan B" that many solar plant developers had been relying upon. In addition, given the potential fallout from the investigations into dumping of solar panels by Chinese companies, the changes may signal a period of reduced returns for the solar industry.
Background -
For some time there have been, and until the switch to Feed in Tariff Contracts for Difference in 2017 there will be, two mutually exclusive schemes providing support to generators of solar electricity in the UK.
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