The report stated that the the green energy subsidies in pursuit of EU renewable targets would further cost consumers an excess of £16bn a year within seven years.
Renewable Energy Foundation (REF) John Constable stated in the report that the subsidies are restraining the innovation that is required to replace fossil fuels with renewable energy sources.
"More people would be working for lower wages in the energy sector, energy costs would rise, the economy would stagnate, and there would be a significant decline in the standard of living," added Constable.
Under EU’s 2009 Renewables Directive, Britain’s energy consumption from renewables must reach 15% by 2020.
Department of Energy & Climate Change spokesperson said the report is claiming that the household cost increase is caused by green energy subsidies, while it is because of global gas price that surged 60%, causing electric bills to rise.
"Second, the costs of renewables are coming down, we’ve already cut the subsidies for onshore wind and solar and in future all green technologies will have to compete to deliver the best bang for the buck," the spokesperson added.
"Third, our household energy efficiency policies are more than offsetting the costs of clean energy investment. By 2020 the average household bill will be £166 lower than it would be if we were doing nothing.
"And lastly, investment in renewable energy is helping support growth through jobs and investment – between 2011 and 2012 investment amounting to £12.7 billion, with the potential support of around 22,800 jobs."
