The Government has finally revealed their long-awaited plans to reward businesses, households and communities for generating renewable electricity.
Energy Secretary Ed Miliband has unveiled plans for Clean Energy Cashback – a feed-in tariff aimed at incentivising low carbon technologies such as solar panels and wind turbines.
From April households and communities will be able to claim cash for all the energy they generate from green technologies – up to 5 WM – even if they use it themselves. They can also get increased payment for any surplus electricity they feed into the National Grid.
Ministers claim a typical 2.5 KW solar panel could offer a “reward” of up to £900 and help cut energy bills by £140 a year.
Announcing the move, Mr Miliband said:
“The guarantee of getting an income on top of saving on energy bills will be an incentive to householders and communities wanting to make the move to low carbon living.
“It will also change the outlook for a range of industries, in particular those in the business of producing and installing small scale low carbon technology.”
He also revealed plans to introduce a similar scheme from next April which will offer cash incentives to install renewable heat generation technologies, such as ground source heat pumps and biomass boilers.
The tariffs have been given the thumbs up by renewable energy groups, although some environmental campaigners warned they were not radical enough.
Maria McCaffery, chief executive of the British Wind Energy Association, said that similar incentives had been successful across Europe, while Jeremy Leggett, executive chairman of Solarcentury claimed:
“For the UK to reach its carbon reduction targets, people have to be given the opportunity to generate their electricity in a rewarding and accessible way, this makes it possible.”
However, David Timms, of Friends of the Earth, warned that the Government had been “too timid”.
He argued:
“There is huge public support for small-scale green energy schemes. The Government must do much more to tap into this enthusiasm and ensure that everyone plays their part in developing a safer, cleaner future.”
Source: Department of Energy and Climate Change, 01/02/2010
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