As per the new measures, the government is planning to remove the guaranteed level of subsidy for biomass conversions and co-firing projects under grandfathering policy of Renewables Obligation (RO).

The move is estimated to save the country about £500m per year in 2020/21.

A consultation will also be launched to limit the solar PV subsidies to 5MW and below under the RO scheme, for early closure of guaranteed subsidy.

The government will also undertake a consultation on changes to the preliminary accreditation rules under the Feed-in Tariff (FIT) scheme. A review will be carried out for further savings.

The UK Department of Energy and Climate Change said the revised measures will offer better control over investments and ensure best possible deal for bill payers to support a low-carbon economy.

UK Energy and Climate Change Secretary Amber Rudd said: "We need to keep bills as low as possible for hardworking families and businesses while reducing our emissions in the most cost-effective way.

"Our support has driven down the cost of renewable energy significantly. As costs continue to fall it becomes easier for parts of the renewables industry to survive without subsidies. We’re taking action to protect consumers, whilst protecting existing investment."