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Tariff levels for different technologies
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Ed Miliband said: "The guarantee of getting an income on top of saving on energy bills will be an incentive to householders and communities wanting to make the move to low-carbon living.
"The feed-in tariff will change the way householders and communities think about their future energy needs, making the payback for investment far shorter than in the past. It will also change the outlook for a range of industries, in particular those in the business of producing and installing small scale low carbon technology."
From 1st April technologies such as solar photovoltaic (pv) panels and wind turbines (up to 5 megawatts) will receive payment for the electricity they generate. The level of payment depends on the technology and is linked to inflation. The scheme will also apply to installations commissioned since July 2008 when the policy was announced.
DECC also published plans for a scheme to incentivise renewable heat generation at all scales, which will be a world first. This will come into effect in April 2011 and guarantee payments for those who install technologies such as ground source heat pumps, biomass boilers and air source heat pumps.
Under the proposed tariffs the installation of a ground source heat pump in an average semi-detached house with adequate insulation levels could be rewarded with £1,000 a year and lead to savings of £200 per year if used instead of heating oil.
Dave Sowden, chief executive of the Micropower Council welcomed the scheme. He said: “The package is a major step forward in allowing people to save money on their fuel bills, cut carbon emissions, and is set to help the recovery by creating thousands of new ‘green collar’ jobs during the next few years.
“There are always points of detail to address for specific technologies and markets, but overall, this is very good news for consumers, for the microgeneration and broader energy sectors, and of course for reducing fuel bills and carbon emissions.
“We particularly welcome the significant boost given to heat technologies such as solar thermal and heat pumps, and the recognition by Government of the crucial role microCHP is going to play in reducing carbon emissions for those with gas-fired central heating”
For further details on the schemes, visit www.decc.gov.uk .
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