The next step

To further information on the Contracts for Difference Scheme

[]

On The Green Deal

[Previous article]

Gone cold on green subsidies

Not such a priority

In 2010 politicians were falling over themselves to promote how green they were. At the time there were new green initiatives (and taxes) appearing regularly. However, since the Conservatives formed a majority government, there has been a change of tack. The Prime Minister has made his opinion on the subject quite clear and has urged his party to get rid of many of these policies. So what’s happening?

Cut it out

The most notable attack has been on the subsidies paid for homes and businesses that generate their own renewable energy. The government says that these systems are now cheap enough to reduce the incentive scheme payments, which will also bring down energy bills. But it doesn’t end there.

Feed-in tariffs

The government is reviewing the incentives it pays for renewable energy through the feed-in tariff scheme. These payments make solar, wind, anaerobic digestion and other green energy generation attractive investments - too attractive according to the government, which says the scheme is unsustainable. Solar payments are being reduced by 86%, whilst for wind it’s up to 50%.

Renewables Obligation

The Renewables Obligation (RO) is another incentive for businesses to invest in green technology. This is being removed and replaced by the Contract for Difference scheme (see The next step ). The government wants to end the RO earlier than planned and cut the level of payments for projects already underway.

Bye bye bank

The Green Investment Bank had billions available to support low-carbon technology. But a 70% stake in the bank is now up for grabs due to a lack of profits and EU rules on lending.

As we stated in August 2015, it’s a similar story for the Green Deal ( yr.10, iss.3, pg.8 , see The next step ). Although money had been made available for green investment, the plug has been pulled here too.

To takeaway

In 2015 we have entered a very stormy phase in environmental policy and regulation, with the government pulling the plug on lots of incentives and creating uncertainty. It all makes for a very complicated picture in terms of what schemes are changing and when.

Tip. Despite the fact that the government has gone cold on green issues, it doesn’t mean that you should too. However, if you’re going to make a significant investment in green technology - especially if the sums only add up if there are government subsidies available - be sure to seek specialist advice and factor in the worst case scenarios.

For a link to further information on the Contract for Difference scheme and a previous article on the Green Deal, visit http://tipsandadvice-environment.co.uk/download (EN 10.04.07).