The Institute for Energy Economics and Financial Analysis (IEEFA) has warned that regulatory barriers are holding back uptake of renewables.
In a new report, IEEFA says that the falling costs of batteries and EVs could help drive the next phase of renewables but only if storage and renewables have the same access to electricity and grid service markets as conventional power plants.
Citing both the end of the UK's feed-in tariff for small-scale renewables and a proposed tax increase for solar and storage technologies, the report claimed that policy barriers will slow down the transition to renewables, with co-author and energy analyst Gerard Wynn saying that the removal of subsidies will “damage renewables markets”.
The report, which examined both Britain and Germany, highlighted that Britain is lagging behind Germany for payback periods of solar installs, at 19 years compared to six.
It also cited new analysis that showed adding an EV and battery system stands to reduce solar payback periods in Britain, predicting that in 2025 a solar-battery-EV system will have a four year payback period, falling to just one year in 2030.
In addition, it said Britain should continue the rollout of EV chargers, in particular bidirectional chargers that support vehicle-to-grid capabilities
The report concluded that a ‘no-brainer’ regulatory reform that allows households to sell solar at least at wholesale power market prices would make these systems more attractive.
Arjun Flora, co-author of the report and financial analyst, said that EVs will be a “potent driver” of change in Britain’s energy system.
“Residential solar PV+battery+EV charging technologies are supporting the societal shift from default conventional electricity consumption, to a more active and conscious ‘prosumption’ behaviour.”