Reductions in Renewable Energy Incentives Significant Blow to Rural Businesses

27 August 2015

The CLA has warned that a decision to dramatically reduce financial incentives for homes and businesses to install renewable energy will leave the huge potential for energy cost savings, carbon reduction and business diversification in rural areas unfulfilled. 

 The plans set out for consultation today by the Department for Energy and Climate Change would significantly reduce the Feed in Tariff for domestic and commercial solar, wind and hydro as well as introduce a budget cap which could see the scheme ended altogether.

 CLA Renewable Energy Adviser Tom Beeley said: “The dramatic change in direction in renewables policy this year has significantly undermined confidence for landowners and other rural businesses that planned to make investment in renewable energy schemes. This announcement confirms that rather than a steady decline in subsidy, with time to reduce costs, the industry is today facing a cliff edge reduction from January. This will mean a significant and far reaching blow for rural businesses, not just those directly involved in installing and maintaining renewable energy equipment.

 “The Government is suggesting that the choice will be between dramatic cuts of up to 87% or the scrapping of incentives scheme altogether. Both outcomes are likely to halt the positive progress there has been in investment in renewable energy generation.  Many rural businesses will feel that an important option to diversify their business and contribute to the UK’s clean energy targets will be closed to them.”

 Click here to view the Government consultation on a review of the Feed in Tariff scheme: https://www.gov.uk/government/consultations/consultation-on-a-review-of-the-feed-in-tariff-scheme