Archived press release

Clean Energy Cash Back scheme launched

1 April 2010

A Government scheme that will pay long-term, guaranteed payments to homes, businesses and communities for generating electricity from small-scale renewable electricity systems launches today.

Friends of the Earth, which led the campaign for the payment scheme says it could make small-scale green electricity technologies an attractive investment for home-owners, housing associations and some businesses, cutting energy bills and creating new jobs in the clean energy sector.

The Clean Energy Cash-back scheme - or feed-in tariff - will pay householders for generating renewable electricity from small-scale green energy systems such as solar panels and micro-wind turbines. The scheme is also open to others including businesses, communities, farmers, schools and hospitals who want to generate green electricity from renewable installations up to 5MW in size (equivalent to two large commercial wind turbines) - although the payments vary by technology and scale of installation.

A YouGov survey for Friends of the Earth, the Renewable Energy Association and the Co-operative Group, published in January, revealed that 71 per cent of homeowners said they would consider installing green energy systems if the feed-in tariff scheme was generous enough.

The scheme will be attractive to many households that want to install solar electricity panels or wind turbines (where it is windy enough). Some cost and payback scenarios are included at the end of this release.

Friends of the Earth's Executive Director Andy Atkins said:

"This new scheme is a tremendous opportunity for people across the UK to play their part in the green energy revolution - and earn tax-free money too.

"The Clean Energy cash-back scheme will allow householders to earn tax-free cash by turning their homes into mini green power stations, cut fuel bills and play their part in tackling climate change.

"UK homes are responsible for over a fifth of UK emissions, but by slashing energy waste, and fitting renewable electricity systems such as solar panels on our roofs and wind turbines in our gardens, they can be part of the solution to climate change.

Other green technologies

The scheme also covers other green technologies such as water turbines (in rivers or old water mills), Anerobic Digestors (which make electricity and heat from burning the gas produced by degrading organic waste) which some rural households or farms might install.

The support for these technologies, as well as larger wind turbines (that a large factory or community might buy) and solar arrays (such as on a large warehouse) is disappointing. Friends of the Earth is calling on whoever wins the General Election to be more ambitious and increase the support to all small scale renewable electricity technologies and larger community owned schemes.

The scheme launched today means small-scale renewable technologies are predicted to provide just two per cent of the UK's electricity by 2020. While this is welcome, it is inadequate. Friends of the Earth has shown that a strong scheme could see six per cent of UK electricity generated by these technologies by 2020 - the equivalent of the massive Drax Power Station or two and half times the output of Sizewell B nuclear power station.

Coming soon - Renewable heat

The Government is also consulting on a renewable heat incentive - due to come into force in April 2011 - which will pay homes and others for generating heat from renewable heat technologies including solar thermal (which heats water directly rather than generating electricity), Ground Source Heat Pumps (which use the earth as a heat source) and wood pellet burners.

The Government says that under the proposed tariffs the installation of a ground source heat pump in an average semi-detached house with adequate insulation levels could be rewarded with £1,000 a year and lead to savings of £200 per year if used instead of heating oil.

Dave Timms, Friends of the Earth's Green Homes campaigner said:

"If the Government gets it right, the introduction of a renewable heat incentive next year could make the UK a world leader in green heat."

Friends of the Earth is also backing calls for existing small-scale renewable electricity systems to receive the same tariff payments as new green generators - those green systems installed before July 2009 will get a much lower payment.

ENDS

Notes
1. Department of Energy and Climate Change feed-in tariff announcement: http://www.decc.gov.uk/en/content/cms/news/pn10_010/pn10_010.aspx

2. Friends of the earth press release: Public backs calls for more ambitious green electricity scheme: http://www.foe.co.uk/resource/press_releases/fits_survey_27012010.html

3. Friends of the Earth and the Renewable Energy Association successfully led a campaign for the introduction of feed-in tariff legislation to the Energy Act 2008. Friends of the Earth was awarded "Advocates of 2009" at the British Renewable Energy Awards earlier this year for its campaigning on feed-in tariffs.

4. See Friends of the Earth press release, 'Small-scale green energy schemes could generate more electricity than two nuclear power stations': http://www.foe.co.uk/resource/press_releases/feed_in_tariffs_30112009.html

5. How the feed-in tariff will work and the technologies it covers: http://www.foe.co.uk/resource/briefing_notes/fit_how_works1.pdf

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Published by Friends of the Earth Trust