Renewable Energy

Energy and Climate Change written question – answered on 11th September 2013.

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Photo of Brian Binley Brian Binley Conservative, Northampton South

To ask the Secretary of State for Energy and Climate Change how much his Department pays in subsidy for each unit of energy produced by each form of renewable energy.

Photo of Michael Fallon Michael Fallon The Minister of State, Department for Business, Innovation and Skills , Minister of State, Department of Energy and Climate Change

The Government supports large-scale renewable electricity generation through the Renewables Obligation (RO) and small-scale generation through the feed-in tariff scheme (FIT). Support for renewable heat generation is available through the Renewable Heat Incentive (RHI). The rate of subsidy for renewable electricity per megawatt hour (MWh) supported through the Renewables Obligation is estimated to be the value of the Levy Exemption Certificate (around £5/MWh) plus the relevant RO band multiplied by the value of a Renewable Obligation Certificate (ROC—worth around £45 in 2012-13 prices). Ofgem issues ROCs to electricity generators in relation to the amount of eligible renewable electricity that they generate. The current ROC bands for each technology supported by the RO are published on DECC's website:

The generation and export tariffs relevant to the FITs scheme are published on Ofgem's website at the following location and are shown in pence per kilowatt hour:

Tariff payments are made by FIT licensees (electricity suppliers) direct to the FITs generators.

The tariffs levels applicable to the renewable heat technologies supported under the RHI scheme are available on Ofgem's website at the following location and are shown in pence per kilowatt hour of heat generated (kWhth):

Tariff payments are made by Ofgem directly to scheme participants.

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