UK Government Announces Clean Energy Cashback Scheme
Previously, we looked at Feed In Tariffs, looking and what they were and their implications if they were introduced in the UK.
Recently it has been announced that a feed in tariff scheme under the name ‘Clean Energy Cashback’ will be introduced in the UK, starting in April 2010. Detailed proposals have been release into what the feed in tariff, or clean energy cashback scheme will involve, as well as details of a ‘pay as you save’ scheme.
More detailed information into what feed in tariffs are can be found in the article ‘Feed in Tariffs - What are Feed in Tariffs’, but the clean energy cashback scheme basically involves paying individuals and businesses for the renewable energy they produce on a small scale.
People and businesses who install or already have installed renewable energy products like wind turbines and solar panels on their land can expect to be paid 36.5p per kWh for Solar PV energy and 23p per kWh for renewable energy generated by wind turbines.
In monetary terms this means that people with solar PV panels, or people looking to install them will be able to earn close to £1,000 a year from energy saving and the money received from the clean energy cashback scheme. The scheme is guaranteed to pay people and businesses for 20 years, so with an average solar PV system costing £8,000-£10,000 considerable money can be earned. In addition to this, photovoltaic panels have a lifespan of more than 25 years, so even if clean energy cashback stops, saving will still be made on electricity costs.
For wind turbines, rewards can be even higher. The Guardian stated that installation of large wind turbines are likely
Clean energy cashback can earn £6,000 a year from wind turbines
to bring in revenues of around £6,000 a year from energy savings and selling back to the national grid as part of the clean energy cashback feed-in tariff scheme. Uptake in rural areas from people with large gardens and also landowners could be very popular as an investment opportunity. Cost and installation of large wind turbines can cost around £50,000, but with the savings and money that can be made from the clean energy cashback scheme, large profits can start being made in the 10th year after installation.
With the lack of safe investments in the financial world due to the current economic climate, investment in renewable energy products are extremely attractive. Stocks and shares are very volatile at the moment, and seem to be in the medium term if not long term. Also, with interest rates low, and people’s mistrust in banks and building society’s, traditional savers previously using ISA’s to save may be tempted to invest their money into renewable energy installations instead.
The Guardian states that return rates for solar PV panels are at around 7%, and wind turbines as much as a 12% return, making them highly attractive investments for any investor. Along with the fact that this kind of an investment brings invaluable environmental benefits, uptake is expected to be very high.
If you would like any more information on this subject, or on how and where to install install renewable technologies in order to benefit from the scheme, please sign up to our newsletter in the right column, or contact us directly here. Green-Energy Saving offer renewable energy installation and consultancy services so if you are looking to install renewable technologies and take advantage of the Clean Energy Cashback Scheme we can provide everything you need. Also, please take the time to answer our poll on the home page, thanks.
Tags: clean energy cashback, feed in tariffs, mic, microgeneration, Renewable Energy