The Department of Energy and Climate Change (DECC) has recently announced the feed-in tariffs levels for small scale electricity production from renewable sources. The scheme is designed to encourage the uptake and development of renewable energy in the UK. It seeks to make such projects significantly more financially viable. The tariffs levels have been calculated to offer between 5 – 8% return on initial investment across various renewable technologies. The payments are made regardless of who actually consumes the electricity – therefore if a farmer wishes to erect a small wind turbine to reduce their reliance on the national grid, they will still receive the payment. Any electricity not used by the holding, can be sold back to the grid, representing an additional income stream on top of the feed-in tariff.
Clearly this represents an exciting development opportunity for farmers and landowners to develop a new income stream and help meet the government’s target of 15% of the energy mix sourced from renewables by 2020.
At the same time the DECC also announced a scheme to encourage the development of renewable energy for domestic property (the Renewable Heat Incentive). From spring next year, householders will be able to receive payments for installing heat generating technologies in their homes, such as ground source heat pumps, biomass boilers and air source heat pumps. At present the Government have issued a consultation document and much more detail will be announced in the forthcoming budget.
If you wish to discuss what effect this announcement could have on your property, and the potential planning implications of the above, please do not hesitate to contact:
Bedford Office: Ipswich Office: Buckingham Office:
Andrew Barr David Brooks Andrew Jenkinson
01234 362926 01473 835250 01280 428010
Robert Franklin Victoria Pearson
01234 362917 01473 835254
Nick Wells Peter Le Grys
01234 362904 01473 834593