Policy Exchange

Green Bills reveals how the total levy in energy – effectively tax to pay for climate and renewable energy policies – is set to soar by 2020. Figures reveal that by 2020, the cost of policies like the Renewables Obligation and Feed-in Tariffs – which pay householders to produce power uneconomically through technologies like solar – will hit over £16 billion a year.

That is a tripling in less than a decade, and equivalent to 4p on the current basic rate of income tax, or 2 per cent of total forecast tax revenues in 2020.