Green Energy 'feed in tarriff' fails to impress

The UK government plans to reward eco friendly households for the green electricity they produce.  The scheme has already been critised for not being generous enough to those wishing to take part.

The clean energy cashback plan, known as 'feed in tarriffs' will offer incentives from april for households who install solar panels or small scale wind turbines.

At present the Uk recieves 5.5% of its electricity from renewable resources.  For the Uk to hit its ambitious target green targets this would need to increase to 30% renewable energy within 10 years.

Under the promosed scheme households would be paid a fixed rate by their energy provider for electricity from a small renewable power source.  Which can be used to save money off their electricity bills.

Homeowner who install photovoltic panels could earn £900 a year when they first put in the technology along with savings £140 a year on their bills, the department of energy and climate change has claimed.

Renewable energy campaigners have claimed this would bring a return of 5 to 8% rate of return on their intial investment for upto 25 years.  Although the technology is releatively expensive to install.

Solar panels and wind turbines of upto 5 megewatts will be paid for their electricity even if the household has used it themselfs.

The cost of the scheme will be paid for by individuals who do not fit renewable energy schemes.  This will mean the average electricity bill will increase by £11.00 by 2020.

Many consumer groups have welcomed the proposal but have critisised the level of incentive payments provided under the scheme.