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Stop renewable subsidy cuts, they cut bills!

A new report published by independent energy company, Good Energy has found that renewables are cutting the wholesale price of energy and lessening the effects of subsidies on bill payers. The announcement comes at a time where the government has pledged to cut subsidies for the likes of wind and solar to keep bills manageable for families and businesses.


According to Good Energy’s findings, wind and solar actually brought down the wholesale cost of electricity by £1.55bn in 2014, which means an overall net cost for supporting the two renewable sources last year was £1.1bn – 58 per cent less than the cost reflected in the capped budget set for green subsidies known as the Levy Control Framework.


A spokesperson for Good Energy, added: “What is not taken into account is that renewable energy, such as wind and solar, has actually been bringing the cost of energy down for consumers. The bill payer money invested into supporting renewables yields significant benefits – let’s be very clear about that.”


The claims are further supported by a study conducted by the University of Sheffield, which looked at the savings onshore and offshore wind farm are contributing to wholesale energy costs.  Dr Lisa Clark from the university said there is clear evidence that wind generation is typically saving consumers around £1.5bn per year. This is more or less the same amount that the subsidies cost, so not only is wind energy decarbonising our electricity generation, it isn’t costing any more than any other source of electricity to do so.”


Paul Barwell, chief executive of the Solar Trade Association, went on to add: “This report is very timely. This analysis shows that the net effect on bills of supporting new rooftop solar – under the STA’s £1 plan – is zero. The £100m we need added to consumer bills over three years will be completely offset by the savings from solar lowering the wholesale price. This is just the evidence that the government needs.”


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