After much speculation that the Coalition government would slash the feed-in tariff set by the Department of Energy and Climate Change, Chancellor George Osborne today announced there would be no immediate unplanned cuts:
“The efficiency of feed-in tariffs will be improved at the next formal review, rebalancing them in favour of more cost effective carbon abatement technologies. This will save £40 million in 2014-15. Support for lower value innovation and technology projects will also be reduced, saving £70 million a year on average over the Spending Review period.”
The review also outlined that over one billion pounds will be set aside for the Green Investment Bank, however the Chancellor said that he hopes much more will be invested from private sector and future government asset sales. By injecting such an amount into this bank, the coalition hopes to create jobs and reduce carbon emissions in order to meet the country’s target of 80% reduction in emissions by 2050.
The government will also go ahead with the planned Green Deal, which has no upfront cost to homeowners, thus scrapping Warm Front, which spent £280m a year on improving energy efficiency for poorer households.