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Small scale solar energy subsidies set to end | Small scale solar energy subsidies set to end |
(34 minutes later) | |
Subsidies for many new solar farms are to end under plans being published by the government. | Subsidies for many new solar farms are to end under plans being published by the government. |
The Department of Energy and Climate Change (DECC) is consulting on plans that would see subsidies for some new solar farms close by 2016. | The Department of Energy and Climate Change (DECC) is consulting on plans that would see subsidies for some new solar farms close by 2016. |
The government says the move is necessary to protect consumers. | The government says the move is necessary to protect consumers. |
The solar industry said subsidies were one of the cheapest ways that the government could meet its climate change targets. | The solar industry said subsidies were one of the cheapest ways that the government could meet its climate change targets. |
Under the government's plans, so called "small scale" solar farms will no longer qualify for support under a key subsidy mechanism - the renewables obligation - from April next year. | Under the government's plans, so called "small scale" solar farms will no longer qualify for support under a key subsidy mechanism - the renewables obligation - from April next year. |
New projects that receive the subsidy may also see the level cut. | New projects that receive the subsidy may also see the level cut. |
Energy Secretary Amber Rudd said: "Our support has driven down the cost of renewable energy significantly. | |
"As costs continue to fall it becomes easier for parts of the renewables industry to survive without subsidies." | |
Small scale farms, which are regarded as the cornerstone of the industry, can be up to 25 acres in size and typically power around 1,500 homes. | Small scale farms, which are regarded as the cornerstone of the industry, can be up to 25 acres in size and typically power around 1,500 homes. |
Supporters argue that the growth of these projects has helped to drive down the cost of solar in recent years. | Supporters argue that the growth of these projects has helped to drive down the cost of solar in recent years. |
But the government says the amount of support for renewable energy - which is paid by households through their energy bills - is set to rise in the coming years above agreed levels. | But the government says the amount of support for renewable energy - which is paid by households through their energy bills - is set to rise in the coming years above agreed levels. |
The Solar Trade Association says the industry accounts for just 6% of funds paid out under the renewables obligation. | The Solar Trade Association says the industry accounts for just 6% of funds paid out under the renewables obligation. |
It insists that support for solar is one of the cheapest ways that the government can meet its climate change targets. | It insists that support for solar is one of the cheapest ways that the government can meet its climate change targets. |