Renewable energy is becoming a more attractive proposition, thanks to guaranteed feed-in tariffs for electricity produced by solar panels.
THE benefits of investment in renewable energy generation for both domestic and commercial users are set to improve dramatically, following February’s government announcement.
April 2010 will see the introduction of new "feed-in tariffs" that provide a guaranteed payment for the generation of electricity from renewable sources, such as solar power, wind and hydro. Payment will be for all electricity generated, not just surplus, will be guaranteed for 20 years or more at rates up to 41.3p/kWh (1kWh is one "unit" of electricity) and will be index-linked.
Furthermore, generating means not having to buy from the grid. Domestic installations are already saving typically 13p/kWh; commercial users are finding similar prices on new contracts. The cost of grid power is currently doubling every five years in real terms and that value will soon overtake the fixed element of the feed-in tariff.
Good installers have access to loan arrangements specifically to assist in capital cost of renewable energy projects. The Carbon Trust offers "soft" loans for businesses and not-for-profits.
According to Laurie Tennant, director of Island-based renewable energy specialist Engenius, the availability of funding, with the guarantee of long-term revenue from feed-in tariff, means there has never been a better time to invest in renewables.
"This is an exciting opportunity for both homeowners and businesses to invest in green technology and reap serious returns. The value of an investment in renewable electricity generation has been hugely increased without any rise in costs".
Citing a typical domestic installation of solar panels, Mr Tennant said the new government incentives meant the payback time on an investment dropped from 20 years to as low as ten years in some cases.
The improvement for a commercial installation is just as dramatic, even before taking into account the future rise in energy prices.
He added: "The Island’s sunny climate has encouraged a rapid uptake of solar technology, while our wind resource makes small turbines very attractive."