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Further cuts pending for green energy subsidies

After reviewing all support for renewable energy, the government is expected to plan a ‘big reset’ on ‘green taxes’.

The issue of renewable energy subsidies was discussed at the weekly meeting of the government’s most senior ministers on Tuesday 14 July.

The solar industry in particular is expecting an announcement on cuts to support.

Last week, the think tank Policy Exchange said the average household energy bill has risen by £120 over the last five years due to what they called “ill-thought through energy and climate policies”.

A spokeswoman for the Department for Energy & Climate Change said: “Reducing energy bills for hard-working British families and businesses is this government’s priority. We’ve already announced reforms to remove subsidies for onshore wind, and that work to make sure bill payers are getting the best possible deal is going to continue.”

REA head of external affairs James Court said: “If the government really are determined to cut emissions in the most cost effective way, technologies such as solar, biomass and onshore wind are the cheapest technologies to do this, yet are also the technologies most often getting attacked.

“Solar is the closest to grid parity, and we need to ensure it has a smooth transition to post-subsidy, not a cliff edge that threatens the industry, the cost reductions and investor confidence.

“The REA and KPMG are releasing the most authoritative report to date on how the government can achieve this next week, and we hope to work with them on the recommendations”.

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