Government plans financial incentives for installing wind turbines and solar panels.

After much debate the government has finally followed the example of Germany and committed to introducing a feed-in tariff (FIT). Unfortunately it is not expected until April 2010 but at least we are going to get one!

The feed-in tariff is actually very exciting news for wind turbine and solar PV system owners. The feed-in tariff was a late addition to the recent climate change bill which you can read at http://www.opsi.gov.uk/acts/acts2008/pdf/ukpga_20080027_en.pdf. (it's a good bedtime read)

The FIT will ensure that anybody who installs a wind turbine, solar panels or any other form of Microgeneration will receive an above market rate for their generated energy. This will drastically cut payback time. The feed-in tariff should revolutionise and encourage onsite Microgeneration in the UK just as it has done in other EU countries .The government plan for the feed-in tariff to run alongside the existing renewable obligations certificate scheme (ROCs) which has had limited success so far.

The government is phasing out the current Low Carbon Building Phase 2 Programme (LCBP2) which enables non-profit organisations to claim up to 50% funding. The LCBP2 is scheduled to finish in June 2009. It is thought this is to make way for the feed-in tariff. A spokeswoman for the Department of Energy and Climate Change (DECC) said "...the government was committed to pushing ahead with plans for a feed-in tariff ..."

The domestic arm of the LCBP will continue to run until 2010 when it will be superseded by the feed-in tariff. This scheme grants funding towards solar PV, wind turbines and other Microgeneration for homeowners.

At present it is not clear how the feed-in tariff will be run or what the premium payment will be. It is possible generators may receive around 40p per unit if similar to many European Countries. The DECC is about to hold a consultation to clarify the best way to organise the scheme.

You can read more about the feed-in tariff at http://en.wikipedia.org/wiki/Feed-in_Tariff