Independent renewable projects have seen the lowest levels of growth in the UK for year as green subsidies from the government come to an end.
As a result of the reduction in government financial support for renewables, the number of projects has fallen drastically due to concerns over the financial viability of such ventures.
A new report by SmartestEnergy shows that a total of £227 million was spent on independent renewables projects in 2017 in comparison to £280 million the previous year and £418 million in 2014 – down more than 45% from its peak.
Documents from last year’s Autumn Budget revealed the government will not introduce any new “green taxes” until 2025 to protect consumers from rising energy bills.
The government has also decided to end feed-in tariffs, which support small scale renewable energy generation.
Iain Robertson, Vice President of Renewables at SmartestEnergy, said: “The reduction in subsidies has inevitably slowed growth in the independent generation sector but these latest figures underline the significant role energy entrepreneurs continue to play as the UK shifts to a decentralised, decarbonised and digitised energy system.”
The report says that the changing financial environment means that new renewable projects that will be able to operate free of subsidies “will be the exception rather than the norm for some time to come”.