Households to be paid for green energy production

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Plans have been announced which could see households receive payments for the green energy they produce.

Under the proposals from the Department of Energy and Climate Change, from April households which use microgeneration technology will get paid based on the amount of energy they produce, even if they use it themselves.

The feed-in tariff payments come on top of any reduction in gas and electricity bills consumers receive from producing their own energy. As well as new microgeneration projects, any installation which was made after July 2008 would be included in the plans.

Energy and climate change secretary Ed Miliband said: "The feed-in tariff will change the way householders and communities think about their future energy needs, making the payback for investment far shorter than in the past."

Estimates from the government show that power created from a solar panel could generate £900 in income from a feed-in tariff and save £140 on a property's heating bill.

At the beginning of the year, the government also launched a boiler scrappage scheme, which helps households save money on their heating bills by offering financial incentives when they swap an old energy efficient boiler for a newer model.

Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.


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