First subsidy-free solar power plant with battery storage opened in UK

The first solar power plant in the UK to operate without any kind of government subsidy was officially opened on 26 September. The Clayhill Solar Farm constitutes a 10MW solar farm in Bedfordshire along with 6MW of battery storage, developed by Anesco. The farm is expected to generate enough power for 2,500 homes.

The company developed the project in partnership with asset management company Alcentra, without relying in any form of government scheme, like Contracts for Difference or Feed-in Tariffs, to subsidize the cost and increase the profitability of the plant. The farm is able to operate without a subsidy in part because of a steep fall in the cost of solar panels and also because it is linked to giant batteries that store power and release it at times of peak demand, where electricity will be sold in a higher price.

The new power project was built next to an existing solar project, near the town of Flitwick. Analysts have said building the farm next to existing projects that already benefit from subsidy schemes was crucial to drive down costs, since some common infrastructure was already available.

“The cost of solar panels and batteries has fallen dramatically over the past few years, and this first subsidy-free development at Clayhill is a significant moment for clean energy in the UK,â€Â Claire Perry, minister for Climate Change and Industry said. Britain has a target to meet 15 percent of its energy needs from renewable sources by 2020, up from 8 percent in 2015.