The Feed-in Tariff (FiT) scheme is scheduled for closure in April 2019.
The announcement comes after the government’s announcement of a new levy framework being introduced to curb costs on bills and provide certainty to investors.
FiTs pay people for creating their own sustainable, clean electricity, with extra payments available when they generate more than they use.
They will not be affected by the new control up until the date the scheme is closed down.
The government predicts by 2025, which is the date new levies may be reintroduced again, offshore wind capacity in the UK will nearly triple, with onshore wind remaining at similar levels to now.
It also expects biomass, energy-to-waste and CHP technologies to significantly grow over this period – these technologies are predicted to be heavily supported by levies in the future.
Georgina Penfold, Chief Executive of the Electricity Storage Network, said: “I appreciate that this announcement will disappoint some end-users who are investing in renewable generation.
“However, if we take a more socialised, whole system view, using generation and storage assets for system benefit – as per the recommendations of Professor Helm – would provide far greater social and technical advantages rather than financing schemes by commercial investors which are optimised for their own commercial benefit.”