New biomass projects, boosted by the incentives of the RO initiative, could secure investments worth £600m for the development of cost and carbon effective solutions.
DECC Secretary Edward Davey said that the government foresees an increased role for biomass projects in the generation of cost-effective and low carbon renewable power in the country.
Building-mounted solar PV projects will also obtain higher incentives when compared to ground-mounted projects to promote installation of solar projects at large factory or warehouse buildings.
"We want to see a healthy solar industry that grows in a sustainable way," Davey added.
The Renewable Energy Association (REA) commended the implementation of RO on biomass projects stating that the DECC has decided against restrictions on suppliers for biomass power.
REA chief executive Gaynor Hartnell said, "Instead of implementing legislation that would have stopped investment in its tracks, DECC is taking more of a ‘wait and see’ approach, with the option of consulting if deployment exceeds 400MW."
Responding to the RO decision on solar, REA On-site renewables head of Mike Landy remarked, "Government has heard the evidence provided by industry and has increased the support for large-scale solar PV compared with its consultation proposals, albeit only slightly."
