Ministers to cut subsidies for smaller solar farms

SUBSIDIES for small solar farms spanning up to 15 football pitches are to be cut, under government plans to tackle the spiralling cost of green energy projects.

Ministers are expected to announce a consultation on proposed changes today as they attempt to rein in a projected £1.5 billion overspend on subsidies for wind and solar farms.

The move comes after Amber Rudd, the Energy Secretary, disclosed that onshore wind farm developers have told her they may still be able to build projects without the lucrative consumer-funded subsidies, which the Conservatives are ending.

Appearing before MPs on the energy select committee yesterday, Ms Rudd confirmed that the annual bill for green subsidies, paid for by households on their energy bills, was forecast to hit £9.1 billion by 2020-21, against the £7.6 billion spending cap set by the Treasury. The overspend is estimated to add £20 to an annual household bill.

Ms Rudd has already announced the early closure of the main subsidy scheme for onshore wind farms, following the ending of the scheme for large solar farms in April this year.

It is understood that the Government is now preparing to propose cuts to the financial support for smaller solar farms of up to 5 megawatts (MW) in capacity. A 5MW solar farm typically spans 25 to 30 acres.

Analysis of official figures by the Renewable Energy Foundation, a group critical of subsidies, suggests there are about 250 such projects either awaiting construction or seeking planning permission.

Ms Rudd’s department is reviewing all green energy subsidies and she told MPs that “value for money” would be top of her priorities.