You can’t help but have noticed that energy prices are reaching scary levels these days. Over the past few weeks we’ve seen the big six energy companies introducing a wallet busting priced rise of around 18% just in time for the winter season. There have been lots of reasons given, but the fact of the matter is that this is really going to hurt the average household which already has an over-stretched budget.
There is the usual “switch supplier” suggestion from various outlets, but let’s be honest, they all charge similar prices. Most house holds have been reducing their energy usage for years so there is little left to cut out there. So what else can you do to keep your energy bills down?
The Government introduced a scheme called Feed-in Tarrifs in April 2010 which are designed to help households install renewable energy sources such as Solar Panels and Wind Turbines. The energy companies then pay you for generating electricity along with any electricity you feed back into the main grid. We’ve put some information together to help explain how this works.
What technologies are covered?
Your equipment must be installed by an MCS certified engineer and generate upto 5MW. Technologies that qualify are:
- Solar Electricity (PV) – roof or stand alone
- Wind Turbine – mounted or stand alone
- Hydroelectricity
- Anaerobic Digestion
Trials are also underway with Micro Combined heat & power.
Paid to generate electricity
The scheme is designed to off set the high cost of installing solar panels and other renewable energy systems. With feed in tariffs you are guaranteed to be paid a monthly fee that is more that your loan repayments for 25 years. You are paid for:
- Electricity you generate – you’ll receive a set rate for each unit you generate. This will continue for between 20 – 25 years.
- Electricity you export – any electricity you don’t use is fed back into the main grid and you receive an additional 3p per KW.
- Save on bills – as you are using less electricity you’ll see a real saving on your bill.
Example from the energy saving trust
Based on a typical domestic solar installation of 2.7 kwp, exporting 50% back to the grid, your annual earning could be:
- £990 from generation
- £40 through export
- £140 saving on your electricity bill
Figures will vary depending on your actual usage.