September 2009:

The non-appearance of the heralded “barbecue summer” underlines just how unpredictable the British weather can be. But even so, a generous incentive scheme is being launched next year to encourage homeowners to create and use their own solar energy.
The government is finalising plans for a “feed-in tariff”, which will pay homeowners for every unit of solar power they generate, even if they use it themselves. Providers say that this will turn clean energy generation into a viable investment for homeowners, rather than just a way to soothe green consciences.

People who act early and install solar panels on their properties over the next few months will also qualify for a government grant of £2,500 towards installation costs, which are typically between £8,000 and £11,000, depending on the size of the property. Once the tariff is up and running, and people have the opportunity to make money out of the energy they create, the government plans to withdraw this grant.

“There is an interesting window between now and next April as people can take advantage of two overlapping government incentives,” says Derry Newman, chief executive of Solarcentury, a provider of solar power systems. “If they spend now, they can get some help with the capital outlay and then from April they can feed into the new tariff.”

Read the article here.

August 2009:

Until now, householders have lavished large sums on solar panels to help the planet rather than themselves. Scientists are concerned that climate change will plunge hundreds of millions of people into hunger, provoke mass migrations, and cause increased storminess, flooding and extreme heat in the UK.

Putting that aside for the moment (this is the Your Money section, after all) are solar panels also a good investment? The answer is that they are now, if you apply for a £2,500 grant before April, because of a sharp change in government policy.
When the Energy Secretary, Ed Miliband, unveiled the UK Low-Carbon Transition Plan in July, the headlines screeched about the impact on most customers: higher bills and "smart meters". Lurking in the accompanying Consultation on Renewable Electricity Financial Incentives 2009 was a significant shift.

From next year, it proposed, owners of solar panels and wind turbines should be paid for all the electricity generated, regardless of whether they used it at home or sent it back to the national grid. These payments are worth hundreds of pounds a year and transform the financial case for installing solar power.

Read the article here.

August 2009:

Producing your own electricity can offer returns that are almost three times better than the top savings accounts, according to analysts.

From this month, until April 2010, homeowners who invest in equipment such as solar panels and wind turbines will be able to benefit from a £2,500 government grant, as well as a new “feed in tariff”, which pays for the electricity they produce — whether they use it or not.

The new tariffs will come into effect in April but by then the government grants — under the Low Carbon Building Programme — will come to an end. During this eight-month transitional period, therefore, homeowners can benefit from both.

Read the article here.