The government has presented a mixed outlook to growers looking to become involved in energy schemes after its “horrifying” decision on solar energy.

Last week, the government announced the details of its “ground-breaking” £860 million Renewable Heat Incentive (RHI).

But it also unveiled proposed cuts of up to 70 per cet to the feed in tariff got large-scale solar energy production.

The NFU branded it an “ill-judged slash-and-burn decision that sends an extremely damaging message to investors in UK renewable energy”.

It claimed the proposed deep cuts in solar tariffs above 50 kilowatts will render many farm rooftop schemes uneconomic, and the potential agri-environmental benefits of large solar farms will become a lost cause. No transitional arrangements have yet been announced for installations already under development.

From 1 August, a 900-square-metre solar roof rated at 100 kilowatts would see a 42 per cent cut in its generation tariff to 19p/kWh, while larger solar installations on rooftops or in fields would see incentives reduced by a massive 72 per cent.

Anaerobic digestion tariffs, on the other hand, are proposed to rise by just eight to 17 per cent (1p-2p/kWh for smaller systems).

It is hoped the RHI will add to UK energy security at a time of rising costs for heating fuels by displacing oil-fired and natural gas heating, as well as coal while reducing greenhouse gas emissions and making a major contribution to Britain's obligations under the European Renewable Energy Directive.

NFU chief renewable energy adviser Dr Jonathan Scurlock said the RHI scheme, which will be introduced this year, “will provide certainty to many potential participants following repeated delays to its launch”.

Fresh Produce Consortium chief executive Nigel Jenney told freshinfo: “Oil and energy prices continue to be at a premium and are likely to continue to be so. On this basis, alternative sources of energy are essential to ensure a viable and developing business. Unfortunately many of these current alternative technologies need financial support, through either green aid or subsidies to make installation viable…

“The produce sector has a unique opportunity due to its location and raw material to take up innovative and cost effective energy solutions in the future.”

Scurlock added: “The fast-moving international solar industry will be driven from the shores of Britain, and the government will struggle to decarbonise power generation without the confidence of investors in land-based renewables. The timing could hardly be worse - this is a ghastly strategic mistake.”

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