The Feed in Tariff scheme for renewable energy launched on April 1.
The Feed in Tariff scheme, which enables private and business electricity customers to reap the benefits of generating their own electricity, has been officially launched today.
Part of the Carbon Reduction Scheme, the ideal of the FiT programme is to encourage investment in renewable energy. Individuals, communities and businesses who install low carbon electricity generation systems such as solar panels or micro-wind turbines, will receive an above the market rate for the energy they produce.
Yesterday, OfGem published draft guidance for electricity generation under the scheme, outlining the processes and procedures that have been established to deliver FiTs, New Energy Focus reports.
The FiTs scheme could be good news for business electricity customers, although concerns have been raised that businesses will be taxed on anything they earn through the scheme. Further criticism of the scheme was revealed in today’s Times. Average returns on investment are predicted to be between 5 and 8 per cent, which is significantly below the returns experienced in Germany, a country that has seen a large increase in renewable energy schemes. The fear is that the returns in the UK will be too low for a similar thing to happen here.
By 2020, the aim is for 15 per cent of the UK’s total energy production to come from renewable sources. Business electricity customers whose usage does not exceed five megawatts are eligible to participate in the scheme.
For advice on other ways to save on your business electricity costs and for the latest business energy prices, contact Energy Advice Line.
Read the Times story here.
And the New Energy Focus article here.
Picture credit – CCA: Solar Panel by toneytone from Flickr
Tags: Business Electricity, Business Energy, Business Gas, Green energy
