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Energy Secretary Amber Rudd today announced the plans to close the "renewables obligation" scheme for onshore wind farms from April 2016, fulfilling a Tory election manifesto promise.
Updated at 4.49pm BST 12.22pm BST Acronyms, acronyms, acronyms The changes to the solar energy subsidies will shift large scale solar projects out of the Renewables Obligation scheme.
The firm added it will now consider its options for the planned biomass conversion, which is still eligible for a lower subsidy under the renewables obligation scheme.
The changes result from allowing some additional lofts and cavity walls in low-income areas to become eligible for the new, smaller, obligation scheme called Eco (energy company obligation).
In 2013, the total cost to the average household of the Renewables Obligation scheme, which covers other renewable energy sources as well as wind, was just £30 a year, or 2.4% of the average fuel bill.
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In energy efficiency obligation schemes, energy savings are accredited for implementing energy efficiency measures.
Second, arbitrary methods of measurement are an integrated element of obligation schemes to minimise excessive administrative costs.
With regard to the savings accredited in energy efficiency obligation schemes that existed when the EU's Energy Efficiency Directive entered into force, economic literature attests this policy instrument to effectively deliver additional savings at low costs.
A footnote suggests this includes money raised by levies on bills, such as the Renewable Obligations scheme and, potentially, new funds, increases in the climate change levy, for example.
The subsidies are funded by the Renewables Obligation, a scheme which requires energy companies to source some of their energy from renewable sources.
The Renewable Obligation (RO) scheme, a separate solar subsidy for larger solar installations of up to five megawatts, is also set for early closure in April.
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