UK Government Proposes Solar and Biomass Subsidy Cuts

The U.K. proposed to reduce support for the solar and biomass-power industries to help consumers who fund the subsidies through their energy bills.

Ministers plan to end a government aid program for small solar projects a year early and will no longer allow small-scale renewables developers to lock in guaranteed power prices under the feed-in tariff program, according to documents on the Department of Energy and Climate Change website.

Prime Minister David Cameron’s administration is scaling back renewables assistance as part of its drive to keep a lid on public spending and reduce the costs to consumers of government policy. Today’s revisions follow cuts to onshore wind subsidies last month and to larger solar projects in April. The new measures are projected to save at least 600 million pounds ($940 million) a year by 2021.