This represents a U-turn as the proposals published in July excluded new solar, anaerobic digestion, onshore wind and hydro power installation of between 50kW and 5 MW from the RO as of April 2013.
The government had wanted to look at the option of using the RO to support renewables developments over 5 MW and feed-in tariffs (FITs) for solar, small scale wind, anaerobic digestion and hydro power projects under 5 MW.
The Department of Energy and Climate Change have been prompted to leave both options open for investors backing renewables projects between 50 kW and 5 MW, due to industry responses to the proposals.
“In light of feedback from industry on our intention to consult on the overlap between the RO and FITs we believe that now is not the time to make further changes to these schemes,” said Energy and Climate Change Minister Greg Barker in a statement.
“Industry needs certainty, and keeping the current arrangements for small scale renewables as they are will help provide this assurance,” he added.
Chief executive of the Renewable Energy Association commented “This decision is most definitely the right one, and will be welcomed by all those in the renewables industry. This is evidence of the government’s willingness to listen to sensible and constructive debate.”
The decision will avoid an influx of large developers in the FIT scheme.