Renewables 'reduce wholesale electricity prices'

The UK’s large-scale electricity cost was lowered by £1.55bn last year according to the study, backed by experts at the University of Sheffield, with contributions from solar and wind power.

This exceeds the £1.1bn spent on green energy by the Department of Energy and Climate Change (DECC); 58 per cent less than Government figures in the Levy Control Framework suggest.

Good Energy chief executive Juliet Davenport says the analysis puts the bill payer at the centre of the debate around renewable energy subsidies. “Let’s give bill payers the full picture and not just half of it,” she commented.

"The money invested into supporting renewables yields significant benefits, let's be very clear about that."

The report comes after comprehensive support of the governments solar cuts, totalling 87 per cent, from the DECC, with Energy Secretary Amber Rudd recently asserting that renewable energy “can stand on its own two feet”.

Paul Barwell, chief executive of the UK Solar Trade Association (STA), who announced an emergency solar rescue plan this week, believes the study is well-timed. He said: “"With the Government’s consultation on the Feed-in Tariff review closing this week, this report is very timely.

“This analysis shows that the net effect on bills of supporting new rooftop solar, under the STA’s £1 plan, is zero.

“The £100 million we need added to consumer bills over three years will be completely offset by the savings from solar lowering the wholesale price. This is just the evidence that the government needs."