The onshore wind industry in the UK will face a reduction of 10% on subsidies as opposed to the Treasury’s 25% cut.

Energy Secretary Ed Davey announced the decision on the Renewables Obligation (RO) today and said the Government will provide support at a level of 0.9 of a ROC, which is guaranteed until 2014.

However, it could change after that as DECC will be launching an evidence session on onshore wind industry costs later this year.

ROCs are subsidies given to energy stations for the amount of renewable electricity they generate.

The Government’s decision comes after months of disagreement between DECC and the Treasury. It also follows the Scottish Government’s letter to the Energy Secretary earlier this week urging him to make a decision and highlighting it had seen no evidence to justify any further reduction than the 10% announced.

Support for marine energy technologies is expected to increase from 2ROCs to 5ROCs per MWh, however, the solar industry still faces uncertainty until further consultation.

The subsidy changes are also expected to boost the economy by £25billion and cut household bills.

Mr Davey said: “Renewable energy will create a multi-billion pound boom for the British economy, driving growth and supporting jobs across the country.

“Because value for money is vital, we will bring forward more renewable electricity while reducing the impact on consumer bills between 2013 and 2015, saving £6 off household energy bills next year and £5 the year after.”

Mr Davey also said the Government sees a strong future for gas.