The Government introduced two new renewable energy incentive schemes yesterday in a bid to encourage greener homes and businesses. The two schemes are expected to improve energy efficiency and increase small-scale low-carbon electricity.
The Government say that their Carbon Reduction Commitment Energy Efficiency Scheme (CRC EES) for businesses and Feed in tariffs (FITs) will help people save money on fuel bills, reduce carbon emissions and generate decentralised low-carbon electricity.
Secretary of State for Energy and Climate Change, Ed Miliband, said:
“From today the rewards for businesses and householders who act to cut their carbon emissions really start to pay off. It’s no longer simply about doing the right thing for the environment, it’s now a sure-fire financial investment.
“The UK is leading the way in tackling climate change. Organisations and householders can play a central role in leading the move to a low carbon economy whilst saving money on their energy bills.”
Individuals, organisations or businesses in England, Wales and Scotland who install renewable electricity generation could benefit from FITs in the following ways:
- They will be paid money for every unit of electricity they generate.
- They will get an extra 3 pence/kWh for every unit they don’t use that is exported to the grid.
- They can also benefit from a reduced electricity bill where they use the electricity that they generate rather than having to buy all they need from the grid.
The Department of Energy and Climate Change believe that a typical 2.5kW, ‘well sited’ solar PV Installation could offer savings of £140 a year plus earnings of £900 a year.
In addition to providing a contribution to meeting the 2020 Renewable Energy Target, the FITs are expected to encourage broad participation of individuals and communities in the shift towards a low carbon economy.
Miliband said “The feed-in tariff is a win-win for consumers. They will be paid for any electricity they generate themselves from low carbon sources and benefit from a cheaper electricity bill.“