'Green Levies Review' will not touch solar

The Solar Trade association describes the DECC statement as 'unambiguous', and believes stability in the schemes is essential to safeguard investment. Perceived instability risks increasing investor costs due to the 'risk premium'.

“Credit to the Secretary of State Ed Davey's office for being very quick to reassure us that investment in renewables is safe," says STA CEO Paul Barwell. "We were able to pass on assurances to our members.

"While the public political wrangles have been frustrating, some of the media reporting has been inaccurate – and inaccurate reporting can create real damage for investors. We hope it is now crystal clear that investment in renewables, including solar, is secure.”

According to the STA, renewables form a relatively modest proportion of the levies set to undergo review, accounting for about a third. The greatest portion of spending goes on schemes to protect vulnerable homes.

According to DECC, between now and 2020 the support Government gives to low carbon electricity will increase year-on-year to £7.6 billion – a tripling of the support for renewable energy.

The Feed-in Tariff for small scale renewable electricity and the Renewables Obligation for large scale renewable power account for £7 and £30 respectively on the average bill in 2013. Taken together, this is 2.9% out of the average bill of £1267 overall and 33.3% of the ‘green levies’ on that bill (£112).

Paul Barwell adds:

“I hope the public is now aware that delivering an increasing proportion of energy from renewables is much more affordable than they may have previously thought.

"Furthermore our costs are falling fast and we expect solar power to be the cheapest form of low carbon electricity well before the end of this decade. Solar is also clean and green and will help safeguard the future for generations to come. That's a prospect well worth investing in today.”