Renewable power is cutting the wholesale price of energy and lessening the impact of subsidies on bill payers, according to a new report released today.
The report, published by Good Energy and backed by the University of Sheffield, said that wind and solar brought down the wholesale cost of electricity by £1.55bn in 2014.
That means the overall net cost for supporting wind and solar last year was £1.1bn, 58% less than the cost reflected in the Levy Control Framework, the report said.
Good Energy Chief Executive Juliet Davenport OBE said: “This analysis puts the bill payer at the centre of the debate around renewable energy subsidies. Let’s give them the full picture and not just half of it.
“What is not taken into account is the fact that renewable energy, such as wind and solar, has actually been bringing the cost of energy down for consumers.”
Experts from the University of Sheffield have backed the report and are about to publish the results of their own study on the savings onshore and offshore are contributing to wholesale energy costs.
Lisa Clark, from the Department of Physics and Astronomy at the University of Sheffield, said: “This report provides clear evidence that UK wind generation is typically saving UK consumers around £1.5bn per year.”
Solar Trade Association chief executive Paul Barwell said: “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.”
Image: The Grange wind farm Lincolnshire (RES)
RE lowers UK power prices
Report says wind and solar lessening impact of subsidies on bill payers
By EBS