Ten member groups have written a joint letter to the UK Government, calling for clarification regarding the future of the Feed-in Tariff (FiT) scheme.
Groups including Energy UK, the National Farmers Union of Scotland and the Solar Trade Association have voiced concerns about the future of the initiative, which supports small-scale renewable energy projects.
The FiT is currently set to close in 2019, with a consultation about what will happen after this date currently being overdue by around a year.
The joint letter to Greg Clark MP, Secretary of State for Business, Energy and Industrial Strategy, said: “We would stress that without a viable route to a market, the benefits that small-scale low carbon energy projects can deliver to the UK risk being lost.”
The group says without knowing they will be supported in the future, investors are losing confidence and the UK is risking losing out on the opportunities associated with developing decentralised, low carbon sources of power.
Hannah Smith, Senior Policy Manager at Scottish Renewables, said: “This letter should serve as a stark warning that the deadlock over the FiT’s future must be resolved as soon as possible.
“Our industry can then go on doing what it does best: creating jobs and cutting harmful emissions from our energy sector.”
ELN has contacted BEIS for comment.