DECC has today released its consultation on the level of support for solar and biomass in an effort to provide certainty for investors.
The new rates are set under the Renewables Obligation (RO), which are subsidies given to companies for the amount of renewable electricity they generate.
The consultation proposes that large-scale solar installations should receive 1.5 ROCs/MWh from March next year followed by a 0.2 reduction every year.
For biomass, the proposal includes cutting the limit of carbon emissions, setting a cap for new biomass power and a requirement for wood fuel to come from sustainably managed forests.
Energy Secretary Ed Davey said: “Solar PV and biomass are important renewable technologies as we move towards a more low-carbon energy mix.
“Our proposals are designed to encourage the most economically sound solar PV projects under the RO and ensure value for money for the consumer.
“We understand the need for market certainty and have moved quickly to finalise these plans. We want our policy to be based on the best available evidence, so it is vital that we receive strong engagement from the solar industry and other interested parties.”