The London Solar Strategy Is A Step In The Right Direction

Low Carbon is a renewable energy investment company, investing in, owning and operating renewable energy products. Quentin Scott, Marketing Director of Low Carbon, talks about the London Solar Strategy and what it has in store

Historically, London
hasn't excelled in the deployment of solar PV. Research from the Green Alliance
points to just 66MW of solar PV installed across the capital "“ the equivalent
of one solar panel for every 200 homes. And recent figures from the Department
for Business, Energy and the Industrial Strategy have shown that London is
lagging behind in the use of what is a proven technology, and home to far, far
less than one percent of the UK's solar capacity of 12GW.

There are a number of
reasons why. Space in the capital is at a premium and makes utility-scale
developments difficult at best. The high number of rental properties in London
have also played a factor. Many landlords are reluctant to invest in solar
installations that will have no direct benefit to them, given it will be their
tenants that will likely be paying the utility bills. Meanwhile, well-publicised
reductions in the incentives from central government to install solar panels
since 2015 have impacted on the sector. And many installers, recognising the
opportunities elsewhere in the country and the challenges in London, have
focused their operations and marketing strategies outside the capital.

On the other hand,
the cost of solar panels is falling. Some of the largest ground-mounted sites
can now operate on a subsidy-free basis. And, if the ambitions of the Greater
London Authority can be realised, we could see London contribute towards
bringing down the costs of rooftop installations more generally.

In August, Mayor
Sadiq Khan launched the London Solar Strategy as part of City Hall's broader
environmental plan. That in and of itself was a positive sign that City Hall
recognised not only the limited solar take-up, but the urgent need to increase
installation levels. That need was born out of two fundamental elements.
Firstly, a need to encourage consumers to reduce their energy costs at a time
when prices have very publicly risen, the cost of living is going up, and wages
have largely remained stagnant. Secondly, the urgent need to increase
low-carbon electricity production in order to cut CO2 emissions that have
caused London's pollution levels to hit dangerously high levels, prompting
multiple public warnings.

Critics of the plan
argued it simply didn't go far enough. The headline figure and commitment
within the strategy was to the deployment of 100MW of solar by 2030. While that
would double existing capacity, it arguably speaks more to the low uptake of
solar in London to date.

But while that
headline figure might not have set many pulses racing, there were some
encouraging signs from City Hall that it's willing to deploy innovative solutions
to initiate higher uptake of solar PV.

Most notably, the
introduction of a reverse auction for homeowners will help to deliver the best
price for Londoners. Following a pilot programme in Norwich, the GLA will
approach households to gauge their interest in installations, then pooling
expressions of interests into lots to be auctioned to installers. The result
will hopefully be affordable solar PV for many homes, and if the results in
Norwich can be replicated "“ an 83 percent increase in installation "“ then we
could see more solar panels in London.

The strategy also
commits to better deployment of solar across the GLA estate using the RE:FIT
programme, and the creation of development of community energy schemes,
supported by £300,000 in grants funding.

So, what should we
make of the London Solar Strategy?

In the short-term,
solar panels aren't going to be a mainstay of the London landscape. And we
should think of 100MW of solar capacity as a target a great city like London
should reach and exceed well in advance of a 2030. But we should look at the
strategy as a positive step in the right direction and a recognition by the
Mayor and his team of the need to get carbon emissions and to do so through the
use of low-carbon electricity driven by increased solar PV. The GLA is
capitalising on positive results elsewhere in the country, and if these are
replicated, we can challenge the historic issues that have held solar back in
London.