The UK 2020 budget has delivered little to help transition the country to a low-carbon economy and support renewables, according to the Solar Trade Association (STA).
STA had called on the government to deliver a budget that unlocked the potential of solar energy in the UK and empowered the transition to net zero greenhouse gas emissions.
But STA chief executive Chris Hewett said: “Unfortunately this budget is thin on measures to tackle climate change and support the transition to a low-carbon economy.
“Renewables are vital to reaching net zero, and without good policies in place to support the uptake of solar we will fall well short of the 40GW needed by 2030 to keep on track. Time is running out to act.
“The freeze on the carbon price support rate is particularly disappointing, as is the lack of any meaningful policy on energy efficiency and green improvements for existing homes, such as solar and battery storage.”
The Chancellor Rishi Sunak announced that the climate change levy on electricity generation to be frozen from April 2022 and increased on gas.
Hewett added: “We do welcome the decision to hold a review of business rates, which are the main barrier to the deployment of large rooftop PV.
“Additionally, we are pleased to see an extension to the Renewable Heat Incentive, and the introduction of a Low Carbon Heat Support Scheme which categorically must apply to solar heat technologies.”
The association had called for solar be exempt from business rates to bring it in line with gas CHP, fair tax treatment, zero-interest loans for green home improvements and a commitment to procure renewable energy for the civic estate.
Legal business DWF energy partner Darren Walsh said the budget contained “subtle positives” in connection with energy and the low-carbon economy.
He said: “It is pleasing to see still further expansion of the Energy Innovation Programme, as this covers a broad cross section of low carbon initiatives, including renewables, smart energy system technologies, nuclear, built environment.
“There is clear support for a carbon capture and storage power station by 2030 but there remains a lack of clear direction for new nuclear build which, as part of the overall energy mix, is essential in meeting the country’s decarbonisation targets by 2050 or earlier.
“In addition, support for further decarbonisation of the transport system is welcomed with support for additional EV fast-charging infrastructure. There is continued support for domestic and non-domestic RHI schemes.”