The solar industry has welcomed the Government’s plan to fix long waiting times and huge costs for connecting to the grid through public investment.
“You would not believe how many businesses complain to me that they can’t get going because they can’t get connected to the grid. It pushes costs up, it drags growth down and it holds Britain back,” said Prime Minister Andy Burnham in his keynote speech to the Labour Party conference.[1]
“We won’t get the growth and inward investment we need if we don’t fix it,” he added.
It is a situation well appreciated by Solar Energy UK and its members, being the subject of repeated requests to the highest levels of Government for many years. Even after several reforms, waiting times to connect solar farms and commercial-scale installations alike can stretch far into the 2030s.
We are glad to see this mission-critical situation recognised publicly by the Prime Minister.
In response, he announced the creation of GB Grid, a new branch of GB Energy. “A publicly owned company that will challenge the private sector operators. It will increase competition, drive down costs and speed up connections so businesses can expand and grow more quickly,” he said.
It will draw from the same funding pool as GB Energy, at least until the next spending review.
As part of the package, developers will be granted the right to build their own connections rather than waiting for grid operators to do so – another welcome decision that should accelerate deployment and lower costs. Long has Solar Energy UK sought direct public investment into reinforcing and expanding the grid. Similar reforms in Ireland have knocked 11 months off connection times, according to the Department for Energy Security and Net Zero.
Moreover, the Government will promote the competitive tendering of projects on the high-voltage transmission network, allowing GB Grid – and other companies – to deliver new infrastructure.
However, it should be stressed the nation’s ageing infrastructure would still need significant updating and investment even without the urgent need to roll out cheap renewable generation.
“As Andy Burnham made clear today, electricity network delays are significant barriers to economic growth – both for new generation and its use by major consumers such as housing and industry. It’s been slowing investment and keeping energy bills high, too,” said Chris Hewett, Chief Executive of Solar Energy UK.
The situation has been compounded by the failure of the distribution network operators to invest in vital upgrades and inexplicable decisions by them.[2]
“So we are very glad to see the Government taking action – but the real test is results: when will we see a resolution of existing challenges such as delays and above-inflation cost increases for grid connections, so our members can invest more in the UK?” he added.
Clarification is also needed about GB Grid’s remit. Will it invest only in the high-voltage network, built to move large volumes of power across the country, or would it extend to the lower-voltage distribution networks, to which the overwhelming majority of solar projects are connected?[3]
We also look forward to hearing more about the promised National Energy Plan.
“The problems we see are not all related to failing to build infrastructure. There has also been a chronic lack of investment in skills, too, which GB Energy and GB Grid need to address urgently. We need more people with the right technical abilities, such as power flow analysis, to deliver the grid that the nation needs for growth and decarbonisation alike. Without that, we will see increasing competition for a limited number of people, which will keep the economy on the leash,” said Gemma Grimes, Director of Policy and Delivery at Solar Energy UK.
Tax and levies
Separately, Energy Secretary Miatta Fahnbulleh has hinted that levies placed on bills will be transferred into general taxation.[4] The MCS Foundation estimates that doing so would save the average household around £120 a year.[5]
The move would continue a trend started under Keir Starmer’s administration and accelerated by Andy Burnham’s decision to remove VAT from electricity bills, which he confirmed would apply from this Thursday.[6,7]
Source
1. Labour Party Conference 2026 Speeches
2. MPs to be told grid delays are descending into farce – Solar Energy UK
3. Is connecting at transmission level the solution to grid delays? – Solar Energy UK
4. Cost of green transition could be spread among UK taxpayers, energy secretary suggests – The Guardian
5. The Case for Further Levy Reform: Impacts on Energy Bills, Fuel Poverty and the Clean Heat Transition – The MCS Foundation
6. Solar industry welcomes legacy subsidy reform – Solar Energy UK
7. Move to cut energy bills praised by solar industry – Solar Energy UK
