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Softening UK Policies Hit Renewables And Residential Energy Services

Date: 26 August 2015

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4 pages

EXECUTIVE SUMMARY

Through June and July 2015, the UK Government unveiled a raft of changes across renewables incentives and energy efficiency policies, as part of a broader programme to reduce public spending by £13 billion ($20 billion) and contain spending on renewables subsidies. The most notable announcements include removing the exemption for renewables in the Climate Change Levy, ending Renewables Obligation subsidies for biomass conversions and onshore wind, scrapping the 2016 target for zero carbon homes, and the ceasing of government funding to the Green Deal Finance Company. Our analysis finds that these announcements will have an immediate impact on generators of incentive-fuelled renewables and providers of residential energy services as the business case gets dampened down. Verdantix finds that energy services providers more broadly should hone in on the fundamentals of the business case as the policy landscape in the UK remains uncertain.

TABLE OF CONTENTS

Softening UK Policies Hit Renewables And Residential Energy Services
Government Cost Control Measures Dampen Down Renewables Support
Incentive-Fuelled Renewables And Residential Energy Services Are Most At Risk
Energy Services Providers Must Hone In On The Fundamentals Of The Business Case

TABLE OF FIGURES

Figure 1. Summary Of Changes To UK Renewables And Energy Efficiency Policy

COMPANIES MENTIONED

Carillion, Department of Energy and Climate Change, Drax, Green Deal Finance Company, HM Revenue & Customs, Inenco, npower, RWE, Willmott Dixon Energy Services