There is now increasing evidence that 2019 will see subsidy-free solar being deployed in the UK. In this report Wood Mackenzie predicts the UK will be among the first few countries in Europe to do so. Much has been made of reduced module and component prices as well as the increased appetite for corporate PPAs. Importantly though this report predicts that we are heading towards £40/MWh in the UK much quicker then others have predicted leading to a pipeline of up to 3GW in the UK.
Many of our clients and contacts in the solar industry have confirmed that their pipelines of subsidy-free projects are ever growing and will be starting very soon. Once the first few projects are build this will lead to an increase in confidence from investors and should see a steady rise in deployment.
But perhaps more pertinently for solar PV, Wood Mackenzie expects solar PV costs “heading towards £40/MWh in the UK”, a price which would make projects “look attractive to potential offtakers compared to power prices”.