The benefits of investment in renewable energy technology for both domestic and commercial users are set to improve dramatically following recent Government proposals.
The scheme will see the introduction in April 2010 of new “feed-in tariffs” (FITs) that provide a guaranteed payment for the generation of electricity from renewable sources, such as solar power, wind and hydro. Payment will be for all electricity generated, not just that which is surplus to requirements, and will be guaranteed for 20 years or more at rates of up to 36p/kWh (1kWh is 1 “unit”). By comparison, electricity is bought from the grid at typically 10p/kWh.
Government grant for the installation of renewable energy systems will be available at least until April 2010, so that new installations can benefit from both grant and FIT.
According to Laurie Tennant, Director of Island-based renewable energy specialist Engenius “This is a window of opportunity for both homeowners and businesses to invest in green technology and reap serious returns. The value of an investment in renewable electricity generation has been hugely increased without any rise in costs”.
Citing a typical domestic installation of solar panels, Mr Tennant said that the new Government incentives would mean that the payback time on an investment will come down from 20 years to around 10 years. The improvement for a commercial installation is even more dramatic, even before taking into account future rise in energy prices.