Britain plans to close solar power subsidy scheme a year early

Britain plans to shut its renewable subsidy scheme for solar projects a year early, documents from the Department of Energy and Climate Change showed on Wednesday.

Under the plan, designed to rein in the spiralling cost of renewable support, solar projects under 5 megawatts would no longer be eligible for the subsidy from April 1 2016.

“Our support has driven down the cost of renewable energy significantly. As costs continue to fall it becomes easier for parts of the renewables industry to survive without subsidies,” Energy and Climate Change Secretary Amber Rudd said in a statement.

Companies have until Sept. 1 to comment on the proposal but industry observers said the solar subsidies were almost certain to be cut.

“Combined with the cuts to wind subsidies, it looks like the government is gearing up for a full-frontal attack on the renewable energy sector,” said Daisy Sands, head of energy at lobby group Greenpeace.

Last month the government said it would all scrap new subsidies for onshore wind farms from April next year.