Energy News

Sick of rising energy costs? Turn the tables on your supplier

Tuesday 4 November, 2008

By hazel.cottrell@consumerchoices.co.uk

There could soon be another good reason to put solar panels or a wind turbine on your roof - the chance to get paid by energy companies for generating electricity at home.

The government last week tabled an amendment to the Energy Bill that would support localised energy production, allowing households to generate enough power to serve more than 1,000 people.

This would likely involve people being paid for the renewable energy they generate through systems like small wind turbines and roof top solar panels.

The amendment proposes that low carbon generators capable of creating up to 3 megawatts of power would qualify for feed-in tariffs. These tariffs would oblige energy companies to pay a premium to use the power.

Tabling the amendment, climate change minister Ed Miliband said: “This decision means that installing equipment like wind turbines, solar panels or biomass heaters will be much more financially attractive. It will make a real difference to families, communities and businesses that want to generate their own energy.”

The government has previously faced opposition from energy companies who claim that allowing individuals and communities the chance to profit from energy production will significantly alter the market.

The amendments will be debated in the Lords this week and the Bill is due to pass into law by December. However these amendments set only enabling powers to permit feed-in tariffs to go ahead. If approved, the details of the tariffs (including payment levels) are not likely to be finalised before 2010 following industry consultation.

Chris Eagle, commercial manager at EnergyChoices.co.uk said: “Allowing households to profit from the creation of renewable energy has great potential. Not only would these measures help cut Britain’s emissions, they would also reduce our dependency on fossil fuels.

“If you’re not quite ready to install a turbine on your roof, check out our guide to green energy tariffs. Most of these will cost no more than you are already paying and are a great first step to doing your bit for the environment.”

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