But it could take up to five years to impact insurance pricing, says broker

Aon thinks it will take three to five years for the Government's plan to encourage green energy to have an effect on the insurance industry.

Tom Sexton, team leader, Aon Renewable Energy said: "The government’s announcement to encourage the building of green energy is an extremely positive step for not only the environment but for businesses who have shown an interest in this field but have been cautious in investing in the technology.

"These measures will greatly assist in increasing the viability and profitability of projects to ensure a larger part of the UK’s energy requirements are sourced from wind, wave, tidal and solar developments.

"Although, from an insurance perspective, the full effect on pricing will most probably not be seen for another three to five years we expect, with an increase in the size and number of green-power projects, for an increase in capacity in this sector, with more and more sophisticated products on offer."