Political Factors
There are many policies and agreements that effect the renewable energy sector such as the Kyoto Protocol and EU legislation. The Guardian (2015) observed that the UK will spend approximately £26 billion on fossil fuel subsidies however the renewable sector receives less than a sixth of the amount. It was calculated that UK tax payers contribute only £55 of their income to renewables in comparison to £413 towards fossil fuels.  
This demonstrates that UK companies within the renewable energy sector such as those companies within this report must compete at a higher level to receive even a little amount of funding. (Forbes, 2015).
The solar sector in particular are facing significant government policy changes; “Close the RO across Great Britain to new solar PV capacity at 5MW and below from 1 April 2016” and “Remove ‘grandfathering’ (a fixed rate of support from the date of accreditation) from 22 July 2015 for solar projects”. These changes have been made because the government are improving their investments within the electricity sector. Looking for more efficient and sustainable methods to provide electricity within Great Britain. (, 2015)
In a recent report, it was stated that “The only legally required milestones are that 15% of our energy is derived from renewable energy sources by 2020 and that the carbon budgets set by the Committee on Climate Change is met” (Hoggett et al., 2011) with a specific target to increase renewables by 20% by 2020. This target will now be much harder for UK companies to contribute to as they are now receiving much less funding and it may take them longer to produce results by the deadline by the agreement.

Economic Factors
The UK’s economic growth has been positive though it slowed during the third quarter of 2015. (Allen, 2015) and recent reports released have shown that the Bank of England isn’t likely to raise the interest’s rates soon as previously expected and that inflation...