Overview

• A Renewable Energy Foundation (REF) report estimates that green energy subsidies add £280 annually to the average UK household energy bill, with indirect costs raising the total impact to £900 per household.
• The report highlights that renewable energy subsidies, which cost £25.8 billion annually, now account for over a third of the UK's total electricity spending.
• The government has challenged the REF's findings, arguing that the report overlooks the long-term benefits of clean energy, including enhanced energy security and potential bill reductions by 2030.
• Critics link these subsidies to the UK's high electricity prices, cost-of-living pressures, and weak productivity growth since 2008, while industry groups emphasize the economic contributions of renewable energy investments.
• Subsidy costs are expected to decline starting in 2027, with the Renewable Obligation scheme, one of the most expensive programs, set to phase out by 2037.