The U.K.’s residential solar sector is facing further cost pressures following the publication of new plans by energy regulator Ofgem to increase network charges for PV households.
The plans are part of a wider overhaul of the U.K.’s electricity network, specifically how it is funded, by 2020. households currently pay an average of around £120 a year towards maintaining the grid. This figures is levied as part of the unit rate that is charged by utilities for electricity that is supplied to homes via the national grid.
In short, homes that buy more power contribute more in upkeep towards the grid. Solar households obviously by less power from the grid because they are able to generate their own electricity for much of the day. Hence, their overall financial contribution to grid upkeep is less than average.
Ofgem is now arguing that this is an unfair situation, particularly in winter when households with solar panels installed will still be as reliant on the national grid as non-solar households.
Read more about this planned schematic on pv magazine.