Tuesday, September 21, 2010

UK Government Renewable Energy Incentives

By Sol E. Parr

There are a number of government incentives on offer to get more people using solar power in an age where there are binding EU targets to stick to. By 2020 all member states must be using 15% of all energy from renewable sources to help reduce the effects of global warming. Currently the amount of UK renewable power only accounts for 1% of its energy mix.

The Renewable Heat Incentive (RHI) will be implemented in April next year by the Department of Energy and Climate Change. The initiative has been put in place to encourage more people to use sources like the sun, air and water for their power supply. Under the scheme you will be paid for the energy that you use but will also make savings on your bills.

It is available to anyone in England, Scotland and Wales from private tenants to large companies. To qualify for the project your solar panel must be installed after July 15th 2009. The scheme is intended to be degenerative, giving the best rewards for those who join in the early stages. Anyone taking part will be paid up to 18p for every kilowatt hour (kWh) of energy they produce whether it is used or not.

There is also a feed-in tariff system which begun in Spring this year for families collecting renewable energy. Households can make a maximum of 36p/kWh and an additional 5p/kWh should they be on holiday and the power goes to the national grid. For a year involved in the campaign a family can expect to receive almost 1,000 in reward and save about 150 on their bills.

However, installing solar panels is still a very costly process with some fittings being almost 10,000. But the payback time is expected to fall by almost half a decade to ten years.

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