Renewable groups have breathed a sigh of relief at the news firms will still get money back for generating energy with small green energy projects.

Smaller solar power, anaerobic digestion and hydropower projects will continue to receive funding through the Renewables Obligation (RO) and Feed-in Tariff (FiT), Climate Change Minister Greg Barker announced yesterday.

Paul Barwell, Chairman of the Solar Trade Association said: “We really are very grateful to the Minister for listening carefully. The interface with the RO and FIT may not be perfect, but it is vital to retain confidence and momentum through this well understood support mechanism.”

Chief Executive of the British Hydropower Association, David Williams said: “This will remove a layer of uncertainty which would have impaired the development of hydro projects in a range critical to the realisation of achievable renewables targets.”

The support will apply to renewable electricity generated between 2013 and 2017 from projects bigger than 50 kilowatts and under 5 megawatts.