Renewables for 1 in 10 UK homes under new deal

UK Renewable Energy Plans

UK families could soon be earning GBP£900 every year if they choose to install renewable energy technologies in their home, such as roof-mounted solar panels, under a new government scheme that looks to reward people for generating their own electricity.

The government hope that through incentivising the personal use of renewable energy they can spread awareness and understanding of climate change in a far-sighted plan to help cut global carbon emissions whilst also making the UK more prepared for a European smart grid.

Under the deal, so called "feed-in-tariffs" due to start in April this year, will see households be paid for feeding electricity into the national grid from clean sources such as solar, wind or waste energy, while also saving money on their bills.

However the plans to reward eco-friendly householders for the green energy they produce has initially been met with a rather muted reaction, but this hasn't prevented the UK government from giving an optimistic forecast claiming one in 10 homeowners could fit panels or small wind turbines by 2020.

Britain's green revolution

Ed Miliband, the Energy and Climate Change Secretary, said he expected the number of people with solar panels alone to increase from 10,000 today to 700,000 by 2020.

The main criticism is that the deal is not generous enough and UK families need more of an incentive if they are to play a significant role in Britain's very own green revolution.

At present the UK gets about 5.5 percent of its electricity from renewable sources and, in order to hit green targets in 10 years time, this would have to rise to 30 percent and this can only be achieved with the cooperation and active participation of the British public.

The BBC reports that homeowners who install photovoltaic panels could earn GBP£900 a year when they first put in the technology, along with saving GBP£140 a year on their bills, the Department of Energy and Climate Change (DECC) said.

An unwelcome "green tax"

Renewable energy groups suggest people will have a 5 percent to 8 percent rate of return on their initial green investment for up to 25 years, although this technology remains relatively expensive to install.

Installing solar panels, which cover a space of around 10ft x 10ft on an average sized roof, will cost around GBP£12,500 but this will be paid back in 10 years because the households will be paid GBP£900 per annum, plus making GBP£140 savings on the yearly electricity bill. A medium sized wind turbine, that costs around GBP£4,500 to install, will earn a household about £400 each year.

The idea works on paper but some are calling it an unwelcome and unnecessary "green tax". Energy bills are already high and are likely to climb further so families may initially be reluctant to accept an additional levy to their existing costs. Household renewable energy technology was recently dismissed as "eco-bling" by the Royal Academy of Engineering, and it will not be your average UK family that can afford to install a roof-mounted solar panel.

Some families cannot avoid high levels of energy consumption, but nor can they afford the alternatives.

Photo: Science Photo Library

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