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

Powerlines-into-sunrise

The Week’s Energy News – 09/12/2016

This week’s energy news covers an acquisition and a host of renewable energy stories. Drax buys Opus Energy ...

Read More
the state of renewable energy

The state of renewable energy – infographic

Renewables are big business, and are increasingly viewed as commercially viable, as well as kinder to the envi...

Read More
the week's energy news

The Week’s Top Energy News – 02/12/2016

The Christmas season has well and truly begun and, in true business style, you’ll either be incredibly b...

Read More
Excellent, 9.6 / 10

Excellent Service

"Many thanks to Anthony Pendleton, very courteous and polite, explained everything in right amount of detail and very helpful in sorting out the business utility switch. Would thoroughly recommend."

This review was posted by Nicola on the 28th of November 2016

Switch Electric

"Rachael Grindrod was excellent, very friendly and helpful."

This review was posted by Maria Allen on the 29th of November 2016

Uswitch electric

"Thanks to Jonathon Burgess who was a great help switching electricity for a charitable organisation. The process was complicated and his patience was appreciated as well as his proffesional attitude. We would not have completed the process without his help. Thanks Dawn"

This review was posted by Dawn Kerr on the 29th of November 2016

Great service from Rachel Grindrod. Thanks.

"Great service Rachel"

This review was posted by Craig Hewett on the 30th of November 2016

Easy to Switch

"Using SwitchMyBusiness made changing electricity suppliers easy. Thank you Anthony Pendleton for your professional approach with advising on which supplier to use."

This review was posted by Vanessa Gernat on the 01st of December 2016