The market for small and medium renewable energy products is "likely to face significant challenges" in the near future according to research company AMA.
In a snapshot look at the market, AMA revealed fluctuations in the renewable energy value, reaching around £3bn in 2015. However, the market is projected to drop significantly by 2020. This, says the AMA, is due to declining government support as well as lower gas and electricity prices.

The main driver of the market has been solar photovoltaics (PV), which accounts for over 80% of all renewable energy, and 98% of all installations under the FIT. While private households were the main area of application, this market has declined since 2012 due to a reduction in subsidies, while demand from the commercial sector has grown.

AMA Research director Keith Taylor explained: "The forecasts through to 2020 illustrate the expectation that the market is likely to face significant challenges, in the form of declining government support as well as lower gas and electricity prices, and this is likely to mean that any growth in the market will be at an individual product level, rather than an overall market level.

"The recent round of degression to tariffs under the FIT scheme is likely to severely impede growth in the renewable electricity sector - while rates have been reduced for all technologies they have been particularly severe for solar PV and windpower."