Britain set out a 5-year plan on Tuesday to unlock the solar and biomass investment needed to achieve the country's 2020 green energy targets.
The Department of Energy and Climate Change (DECC) sought to give investors the certainty they need to build new solar and biomass power plants by deciding subsidy levels over the 2013-2017 period.
Support levels for the solar photovoltaic (PV) industry, while higher than initial proposals made by the government in September, will be cut by 20 percent from current levels starting in April 2013, when the new scheme takes effect.
The government won praise from developers of biomass projects who welcomed its decision to relax its original plan to cap subsidies once dedicated capacity exceeded 400 megawatts (MW).
The government expects the move to mobilise at least 600 million pounds ($975 million) in biomass projects - burning material like straw and sawdust to generate power - while one developer said it could unlock billions of pounds of new investment
Britain's subsidies are aimed at helping it meet targets to derive 15 percent of its energy demand from renewable sources by 2020 and reduce carbon output.