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Contracts for Difference – Changes to Supply Chain Plans

Solar Energy UK is committed to supporting sustainable practices and products across the whole of the solar and storage value chain. It is important to note that multiple economic analyses have shown that the average UK content for solar investments is well over 60%, and this is projected to increase to as much as 80% by 2030.

We understand the proposals in this consultation would apply to any eligible technology; however, it has largely been offshore wind projects which have been subject to Supply Chain Plan (SCP) requirements to date. While almost all solar projects in the UK have been below the 300MW threshold for submitting a SCP, it is possible that in future a small number of solar projects applying to the Contracts for Difference (CfD) scheme may exceed this threshold.

Hence, Solar Energy UK is keen to ensure the SCP process and the proposed changes work for solar as well as other technologies. Our response focuses on consultation question 5, as our members have expressed significant concerns about the introduction of a new Operational Condition Precedent (OCP) applied to the SCP process. Solar Energy UK is keen to work with government to ensure that the process for any further requirements and review of SCPs is clear and proportionate, to enable the successful participation of large-scale solar projects in the CfD scheme.