Power generation reward scheme
From April, households and communities that install generating technologies such as small wind turbines and solar panels will be entitled to claim payments for the electricity they produce.
Energy and climate change secretary Ed Miliband today announced details of the feed-in tariff (FITs) for small-scale low-carbon electricity. It is estimated a typical 2.5kW well-sited solar photovoltaic (pv) installation could offer a homeowner a reward of up to £900 and save them £140 a year on their electricity bill.
From 1 April, those who install low-carbon electricity technology such as solar pv panels and wind turbines up to 5MW will be paid for the electricity they generate, even if they use it themselves.
Ofgem will administer the feed-in tariff scheme and suppliers will be responsible for paying the reward to their customers.
The level of payment depends on the technology and is linked to inflation. They will get a further payment for any electricity they feed into the grid. The scheme will also apply to installations commissioned since July 2008 when the policy was announced.
The energy secretary also revealed a blueprint for a similar scheme to incentivise low-carbon heating technologies in April 2011. It is believed this renewable heat incentive (RHI) will be a world first.
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