Chancellor urged to invest public money in renewable energy

Analysis by Green Alliance finds subsidies for fossil fuel generation more costly than simplified system favouring renewables

Building more renewable energy capacity with public money would cost less than the current subsidy regime in the UK, a new analysis has found, despite government claims that subsidies are too expensive.

Ministers have justified the slashing of some incentives to install solar panels, and ending support for onshore wind, on the basis that subsidising the construction of green energy was adding too much to energy bills. The government does not subsidise renewable generation directly but allows for incentives to some technologies through additions to consumer bills.