Two much-anticipated carbon cutting initiatives have been recently launched by the Government.
Both the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme and the long-awaited Feed-in Tariff (FIT) incentive have come into effect from the beginning of April.
Under the CRC Energy Efficiency Scheme, around 5,000 large businesses and public sector bodies that spend more than £500,000 a year on energy bills will be required to report annually on their energy use and “buy” allowances to match their carbon footprint. Revenue raised from these allowances will offered as bonus payments to participants that improve their efficiency the most, while the least efficient organisations will be hit with further financial penalties.
The long-awaited introduction of a Feed-in Tariff is designed to encourage businesses and homeowners to install renewable energy technologies including solar panels, heat pumps and wind turbines. Dubbed as a “Clean Energy Cashback” scheme, it offers a financial incentive for generating “green electricity”, with bigger rewards available for surplus power that is sold back to the National Grid. According to the Government, a “well-sited” 2.5 KW solar panel could net annual energy savings of up to £140 plus a cash reward of £900 a year.
Announcing the double boost, Climate Change Secretary Ed Miliband commented “The rewards for businesses and householders who act to cut their carbon emissions really start to pay off. It’s no longer simply about doing the right thing for the environment, it’s now a sure-fire financial investment.”
Ministers hope the programmes will play a key role in meeting the UK’s 2020 carbon emissions reduction targets.
Contact Robert Franklin on 01234 362917 if you have a potential scheme which you would like advice upon.