Renewable subsidies ‘won’t be touched’ by PM’s green levies review

Prime Minister David Cameron’s review of green levies won’t touch renewable subsidies for solar power and wind, a statement from the Department of Energy and Climate Change (DECC) suggests. The […]

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By ELN reporter

Prime Minister David Cameron’s review of green levies won’t touch renewable subsidies for solar power and wind, a statement from the Department of Energy and Climate Change (DECC) suggests.

The department’s tacit ring-fencing of the Renewables Obligation and the Feed-in Tariff has reassured green energy trade groups worried by the mixed messages from Downing Street.

DECC said: “No one is talking about changing investment incentives for renewables, such as the Renewables Obligation, Contracts for Difference and feed in tariffs which are essential for investor confidence in the renewables sector”.

The Solar Trade Association’s Chief Executive Paul Barwell said “credit” should be given to the Secretary of State Ed Davey’s office “for being very quick to reassure us” investment in renewables is safe: “We hope it is now crystal clear that investment in renewables, including solar, is secure.”

The STA pointed to DECC figures which show the Feed-in Tariff for small scale renewable electricity and the Renewables Obligation for large scale renewable power make up 2.9% of an average bill of £1,267.

It still remains unclear exactly which ‘green levies’ the Prime Minister plans to chop. Referring to the plans on on Twitter, the Labour MP Alan Whitehead tweeted: “Well nothing is a subsidy, it seems, which makes it a bit hard for Govt to ‘roll back green subsidies’ when there aren’t any”.