Govt offers incentive for 'home-grown' energy suppliers

05/02/2010

The introduction of new micro-generation energy supplies among households, communities and businesses will see a financial incentive provided to participants in a bid to improve the provision of commercial electricity.

The government has announced what it says is the world's first incentive scheme for renewable heat in a bid to kick-start more efficient and environmentally-friendly energy processes, saving businesses and people money as well as cutting emissions.

From April communities and individuals installing generating technologies such as wind turbines and solar panels will be eligible for payments for any low-carbon electricity they produce.

Energy and climate change secretary Ed Miliband said the renewable heat incentive would be a world first, adding it could yield a marked shift in the way energy is priced and perceived, potentially heralding a new era of cheap electricity.

"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," he said.

"The feed-in tariff will change the way householders and communities think about their future energy needs, making the payback for investment far shorter than in the past.

"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."

The UK currently generates around 5.5 per cent of its electricity from renewable sources but is aiming to increase that figure to around 15 per cent by 2020.

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Posted by Richard Smart