UK homeowners to get “solar panel loans”
UK homeowners will soon be able to take out “solar panel loans” to cover the high costs associated with installing and maintaining solar panels. According to reports, some solar panels can cost up to £12,000 to install and take decades to pay for themselves.
However, from April UK homeowners will be paid hundreds of pounds a year for generating energy from renewable sources.
The new “feed-in tariff” legislation is designed to encourage investment by UK homeowners into solar and renewable energy. The feed-in tariff is to be funded by a levy on home fuel bills.
UK Homeowners will be paid for the energy they generate for the grid.
According to The Observer, “People who generate electricity via photovoltaic solar panels, wind turbines, hydro power or anaerobic digestion will receive up to 36p per kW/h of electricity, even if they use the power in their homes rather than feed it into the national grid. An extra 6p will be paid for every unit supplied to the grid.”
Ed Miliband, the Energy Secretary, said the tariffs will incentivise "householders and communities wanting to make the move to low-carbon living".
At the moment a mere 5.5 per cent of the UK’s electricity comes from renewable sources. However, the government hopes to get this up to 30 per cent by 2020.
Alex Murley, of the British Wind Energy Association, said: "This tremendous policy agenda will stimulate UK small-scale wind manufacturing, create thousands of jobs, and transform national attitudes towards energy generation and use."
Nevertheless, not all parties have been impressed by the legislation with consumer groups claiming that the tariffs have been set too low.
Liz Laine, of Consumer Focus, said: "The Government needs to offer more attractive cash-back rates to overcome the cost-barrier of installing this technology."
