The capacity of the British solar market has multiplied over the past five years from a meagre 65 MWp (megawatt peak) of installed capacity in 2010, to today’s 5,000 MWp. The UK now has the most new solar plant installations in Europe, bumping Germany off its first-place pedestal. That makes it one of the most attractive renewable energy markets in Europe.
As owners of Great Glemham, the AREF Investor Group is able to benefit from renewable energy subsidies offered by the UK Government. However, though this is one of the solar farm’s economic advantages right now, Sandhövel cautions that, in the case of long-term investments, it would be dangerous to rely solely on subsidies: “Government subsidies for renewable energy facilities are typically cut back once they become interesting to free economic competition. Since there are no guarantees that subsidies in the UK will be made available over the long term, a project like Great Glemham, with its combination of cutting-edge technology and advantageous geographical location, makes it even more in demand by investors.”
Favorable regulatory environment in the UK
As owners of Great Glemham, the AREF Investor Group is able to benefit from renewable energy subsidies offered by the UK Government. However, though this is one of the solar farm’s economic advantages right now, Sandhövel cautions that, in the case of long-term investments, it would be dangerous to rely solely on subsidies: “Government subsidies for renewable energy facilities are typically cut back once they become interesting to free economic competition. Since there are no guarantees that subsidies in the UK will be made available over the long term, a project like Great Glemham, with its combination of cutting-edge technology and advantageous geographical location, makes it even more in demand by investors.”