Installation of solar projects at large factory or warehouse buildings will now receive higher rates when compared to ground-mounted projects.

Commenting on the incentives for the solar industry Energy and Climate Change Secretary Edward Davey remarked that the government was committed to reducing technological costs.

Minister of State for Energy and Climate Change Greg Barker added, "We have listened to industry about the need to differentiate support between building mounted and ground mounted installations and we have introduced two bands as a result.

"Our proposals for solar projects on commercial buildings will encourage businesses to consider solar PV as a serious option for meeting their power needs."

New biomass projects will also receive support from the RO initiative and could potentially unleash £600m in investments in the sector.

Biomass can make a significant contribution to low-cost, clean energy generation in the region, admitted Secretary Davey.