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Cancel PV VAT! The UK plans to reach 70GW of photovoltaic installed capacity in 2035!

According to foreign media reports, the British government recently released an energy security strategy that details the goal of increasing the country’s installed photovoltaic power generation capacity by five times. The strategy is in response to growing uncertainty in the energy sector, recent high oil prices, and volatility over the past month due to the conflict between Russia and Ukraine.

Source: UK Department for Business, Energy & Industrial Strategy (BEIS)

Prime Minister Boris Johnson said: “We are developing a bold plan to expand and accelerate the development of cheap, clean and safe energy in the UK over the next decade, from new nuclear to offshore wind. This will reduce our vulnerability to prices. Volatility affects international energy dependence, and we can achieve energy self-sufficiency using cheaper electricity.”

The strategy, which provides support for new nuclear, offshore wind and heat pumps, has also been criticized by some in the energy industry for not including energy efficiency measures or providing more direct support to consumers struggling with soaring energy bills.

Regarding how to facilitate the deployment of photovoltaic systems, the UK government is planning to negotiate rules to simplify the rollout of photovoltaic systems and will help the photovoltaic industry create 10,000 jobs by 2028, which is almost double what was previously expected.

Under the strategy, residential and commercial rooftop PV developers will be consulted on relevant permit development rights to radically simplify the planning process and will consider the best way to utilize public sector rooftop PV systems.

The last revision to the licensed development rights for rooftop PV in the UK was in 2015, when the licensed development threshold for rooftop PV was raised from 50kW to 1MW. The UK government will also revise performance standards to make installing PV systems a must-have for new homes and buildings.

The recent removal of VAT on residential PV systems in the UK is evidence that the strategy is already supporting the technology.

For the installation of large-scale photovoltaic systems, the UK government will negotiate changes to planning rules to strengthen policies in favor of development on non-protected land. This includes ensuring that the community continues to be able to have a voice on developments and working to protect the environment.

The British Photovoltaic Association welcomed the release of the strategy, claiming that by 2035, installed PV systems in the UK will grow from the current 14GW to 70GW, increasing installed capacity fivefold and providing more jobs.

Chris Hewett, chief executive of the British Photovoltaic Association, said, “The UK government’s plan to increase installed PV system capacity by a factor of five by 2035 shows that it now has goals in line with the UK PV industry. The announced plans, CFD auctions, and potential Changes to the low-cost financing package could significantly speed up the deployment of PV systems and create thousands of jobs, cut energy bills, and make the UK more energy secure.”

But there were also less positive reactions and views, with the lobbying group’s Dr. Alice Bellf noting that the 10,000 job target was less than the number of jobs the UK government lost in a year after the tariffs were lifted in 2016.

She said, “Just six years ago, the UK Photovoltaic Council was complaining that the previous UK government had cut 12,500 jobs in just one year, and the current government offered a pledge to create 10,000 PV jobs in six years. It’s hard to accept. This is not a visionary energy policy.”

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