Solar energy use on the increase.

Huge drop in solar prices causes firms to rush to connect.

12:38 24 March 2015

The government has said that in the next ten years, solar energy could provide 4% of the electricity in the UK. 

 

The government has increased the forecast of solar energy use, as a result of a drop in solar panel cost (up to 70%.)

 

This drop contributed to a decision by the government, to  decrease subsidies for large-scale solar in March.

 

Not everyone agrees with this move - the solar industry feels that this cut will affect competition with fossil fuels.

 

Firms now are rushing to connect to the grid.

 

According to the Solar Trades Association the amount installed this year so far, is as much as in the whole of last year.

 

The prediction is that this boom will decrease over the next few months due to inability of firms to compete.

 

Leonie Greene said, "We need subsidies for another few years - maybe five - before we can compete with fossil fuels in the UK."

 

She feels that the government's withdrawal of subsidies will delay solar's ability to compete with fossil fuels.

 

Opposing this view is Energy Secretary, Ed Davey.

 

He stated that solar was in a position to compete already and this can be seen from the tenders for contracts between renewable energy companies, with solar energy firms providing two of the lowest bids.

 

Mr Davey thinks the dramatic drop in cost of solar power is,"wonderful for humanity."  He refers to the vast number of Indians (3oo million) with no electricity.

 

He compared the effects of the solar power to those of the mobile phone on communication.

 

Mr Davey predicts an increase in solar use of 5GW by 2020.

 

He said solar was not using too much of the budget for renewable energy so the subsidy needed to be reduced.  The subsidy for solar use in domestic purposes would continue.