How much could your business save?Find out now!
Or, you can call us on:0800 411 8830

Wind energy: end of subsidies to ‘destroy investor confidence’


Early closure of onshore wind subsidies may damage investor confidence in renewables, industry figures have warned. What does this mean for UK energy?

Since re-election in May the Government has made its intentions clear to stop new subsidies for onshore wind. Under the current scheme, the Renewables Obligation (RO) initiative, onshore wind projects that are built before March 2017 will automatically receive funding. But this could be set to change, with energy minister Amber Rudd appearing far from enthusiastic about new on-shore wind farms.

The minister is expected to soon announce the early closure of the scheme from 1 April 2016. Onshore wind farm developers will then need to bid for public subsidy under a new scheme, Contracts for difference (CfD).

The announcement is not a shock as it was part of the Conservative Party Manifesto, stating that onshore turbines, “often fail to win public support and are unable to provide the firm capacity that a stable energy system requires.”

The Department of Energy and Change have said there will be a grace period for projects that already have planning permission. But it is estimated that almost 3,000 wind turbines are awaiting planning permission with this announcement jeopardising these plans.

Estate agency Savills, which has been involved in on-shore wind farms, has warned that excluding new onshore wind farms from the subsidy scheme a year earlier than expected may cost the UK economy millions.

Advantages and disadvantages of wind energy

Wind turbines are one of the ways that the UK is diversifying its energy generation away from fossil fuels. There has been a striking increase in renewables generation in recent years, although some criticise onshore wind and solar generation as a blight on the rural landscape. There have also been complaints of noise from some nearby residents.

Whatever your thoughts on wind power, the current level of transparency of how business energy suppliers generate their electricity means that businesses can choose to support (or avoid) certain types of energy according to their preference.

To find out more – or simply to compare business energy and switch supplier in just 20 minutes – give us a call on 0330 0100 251 or fill in the form on the top right of the page.

Related Articles

energy news 21/01/2017

Energy News – 21/01/2017

The week of Donald Trump’s inauguration has seen shaky energy markets, a landmark Brexit speech by Theresa M...

Read More
how business leaders avoid burnout

How business leaders avoid burnout

When you’re a small business owner the buck stops with you, which can make it incredibly difficult to sw...

Read More
how to make 2017 your best year ever

How to make 2017 your best year yet

Whether you heaved a sigh of relief when 2016 ended, or said goodbye to the year with sadness, we have some ti...

Read More
Excellent, 9.6 / 10

Thanks Mark...

"Mark was very helpful and had all the answers to the questions I had - would go back to him time and time. Thanks Sir"

This review was posted by Wayne Nugent - Mailing Guy on the 20th of January 2017

Switch Business Electricity Contract

"Very good & efficient service - good range of prices offered from variety of suppliers"

This review was posted by SALLY DOLMAN on the 20th of January 2017

Cheerful, helpful service.

"Aaron Gallagher was my contact at SwitchMyBusiness.com. Aaron was cheerful and helpful he made switching our electricity supply easy and painless giving an understandable explanation each step of the way. I would quite happily recommend this company and Aaron Gallagher to anyone given the task of arranging a new energy contract."

This review was posted by Pam Johnson on the 19th of January 2017

Kyle Wright - Excellent Service

"Dealt with the above on two occasions now and has made the process of switching energy suppliers very easy. Very Polite and helpful person, will defiantly want to deal with again."

This review was posted by Skyline32 on the 19th of January 2017

Made this a very simple transaction!

"Aaron was polite, friendly and extremely helpful, making this potential chore a very easy transaction. He explained everything thoroughly and answered all my questions and I feel very confident that the whole transition will go very smoothly and I am aware of what to expect as the process moves forward. Thanks Aaron!"

This review was posted by Lesley Clayton on the 18th of January 2017