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Environment and greener living
Financial incentives for generating your own energy for your home
You can help to lessen your carbon emissions and bring down fuel bills by producing clean, green energy in your home. Householders are now able to apply for grants of up to £2,500 per building towards the cost of installing certified microgeneration technologies such as solar panels and biomass boilers. You can also claim other financial rewards for generating your own electricity.
The microgeneration grant
The Department for Business, Enterprise and Regulatory Reform (BERR) – through the Energy Saving Trust (EST) – provides grants to householders of up to £2,500 per property towards the cost of installation of microgeneration technologies through the Low Carbon Buildings Programme (LCBP) Phase 1.
To be eligible for a grant, you must undertake certain energy efficiency measures, choose a certified installer and a certified product and have spoken to your local authority about planning requirements before applying for a grant.
If you apply online you will get an instant decision over whether a grant application has been successful or not.
How much are the grants?
The current grant levels for different technologies are:
| Technology | Maximum amount of grant |
|---|---|
| Solar photovoltaics (solar panels) |
Maximum of £2,000 per kilowatt (kW) of installed capacity, subject to an overall maximum of £2,500 or 50 per cent of the relevant eligible costs, whichever is the lower |
| Wind turbines | Maximum of £1,000 per kW of installed capacity, subject to an overall maximum of £2,500 or 30 per cent of the relevant eligible costs, whichever is the lower |
| Small hydro | Maximum of £1,000 per kW of installed capacity, subject to an overall maximum of £2,500 or 30 per cent of the relevant eligible costs, whichever is the lower |
| Solar thermal hot water | Overall maximum of £400 or 30 per cent of the relevant eligible costs, whichever is the lower |
| Ground source heat pumps | Overall maximum of £1,200 or 30 per cent of the relevant eligible costs, whichever is the lower |
| Automated wood pellet fed room heaters/stoves | Overall maximum of £600 or 20 per cent of the relevant eligible costs, whichever is the lower |
| Wood fuelled boiler systems | Overall maximum of £1,500 or 30 per cent of the relevant eligible costs, whichever is the lower |
You can apply for funding for up to three different technologies on one building, with a maximum of three different buildings funded (these have to be on separate applications). There is a maximum of £2,500 of funding available per installation address.
What must I do before applying?
Before applying you may need to make adjustments to your house to make sure you have:
- insulated the whole of the loft of the property to meet current building regulations (eg 270mm of mineral wool loft insulation or suitable alternative)
- installed cavity wall insulation (if you have cavity walls)
- fitted low energy light bulbs in all appropriate light fittings
- installed basic controls for your heating system to include a room thermostat and a programmer or timer.
It is also recommended that you complete a home energy check to assess which measures are most suitable for your home. You can also call your local Energy Saving Trust advice centre on 0800 512 012 for guidance on energy efficiency measures and energy efficiency grants available in your area.
How does the process work?
Here’s a step-by-step guide to the process
1. Check that you have completed the energy efficiency measures required by the programme and obtained planning permission for your installation if necessary. From spring 2008 microgeneration installations which have little or no impact outside the property will not need planning consent). You also need to have obtained a quote from an accredited installer. The Microgeneration Certification scheme will provide consumers with independent certification of microgeneration products and services and a route for complaints
2. Make an application online
3. After receiving a grant offer letter via email, order the equipment and begin installing the technology. The grant validity period varies by technology
4. After you have completed the installation and you have paid the installer, you can submit the claim documents to the Energy Saving Trust
5. The grant claim is checked and, if in order, the grant will be issued within 25 working days of receipt of all the documentation
Apply here for a grant
Other financial incentives for micogeneration
You can also access financial rewards for generating electricity such as Renewable Obligation Certificates (ROCs) or other green energy certificates.
You may be able to claim other grants and should contact your council or Regional Development Agency.
You can also sell any surplus electricity you generate back to the national grid. Contact your electricity supplier for more information.
Also, some banks and other organisations are offering ‘green loans’ to help with installation costs.
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