How could the new feed-in tariff impact on business electricity bills?

08/02/2010

The government's newly announced green energy incentive scheme, otherwise known as the Feed-in-Tariff (FiT), has been welcomed by energy suppliers and sector commentators alike.

The scheme - which will become law for projects commissioned from April 2010 - rewards households and businesses that invest in green technologies by guaranteeing to pay a set rate for each unit of energy produced.

While npower is among the suppliers urging consumers to buy now to take advantage of the scheme, there has been much talk about whether the returns are there for businesses.

However, according to Green Wise Business, the FiT does create investment opportunity for the right renewable technology in the right location.

Writing for the website, Ben Cosh, founder and managing director of the Green Company, states that his company's analysis shows owners and investors who raise their own capital can reach up to ten per cent nominal returns with a reasonable site.

"There are a handful of premium sites where better returns are possible, but even ten per cent return is better than leaving cash in the bank," he added.

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Posted by Tom Barnett