How do solar PV installations get paid?

Solar PV installations up to 5 MW can receive payments from energy companies for the electricity that they export to the national grid, through the Government-backed Smart Export Guarantee. More information on the Contracts for Difference and Smart Export Guarantee schemes, as well as recent policy statements on solar power, is set out below.

Will China restrict solar-panel exports to certain countries?

The first is the economic risk that China might in the future make use of its predominant position in global solar PV manufacturing to distort the market and artificially obtain additional economic rents. The second is the geopolitical risk that China might restrict solar-panel exports to certain countries to pursue geopolitical goals.

Is there public support for solar PV Manufacturing?

The solar industry encompasses so many manufacturing processes that the concept of ‘public support for solar PV manufacturing’ is an oversimplification. The production of a solar panel begins with quartz (SiO2), commonly found in sand. This is transformed into polysilicon by an energy-intensive process of melting and purification.

Should solar panels be imported?

However, for the solar sector specifically, there is no strong economic justification for an import-substitution approach. Such a strategy risks increasing the costs of solar panels, slowing deployment and creating industries that are over-reliant on subsidies.

Are solar farms covered by a national policy statement?

Although solar farms are not covered in the existing suite of National Policy Statements, the draft National Policy Statement for renewable energy infrastructure covers solar farms at the scale of nationally significant infrastructure.The draft National Policy Statements are currently undergoing Parliamentary scrutiny.

Could China impose trade restrictions on solar panels?

Imposing trade restrictions on Chinese solar panels would lead to higher costs, slowing deployment of panels and, possibly, a net-negative job effect. That would occur if more jobs were lost from a slowing of deployment than new jobs were created in possible new manufacturing facilities.