Published: 27 June 2006
Earn money for your excess energy
Royal Assent has been given to a Private Member's Bill that will make it easier for householders who produce electricity from microgeneration technologies at their homes to sell unused power back to their supplier.
The Climate Change and Sustainable Energy Bill aims to reduce carbon emissions and fuel poverty through a series of measures designed to increase installation of micro-wind turbines, solar panels and other localised energy production technologies.
Welcoming the Bill to the statute books, Minister for Energy Malcolm Wicks said:
"The ability to produce clean, green energy from homes or businesses can help to lessen our carbon emissions and bring down fuel bills.
We, as individuals, must make a contribution to the fight against climate change, as we can't just expect big institutions or governments to solve the problem for us, we all have to make a difference.
I would like to see local level and community energy production becoming more commonplace.
This will allow us get back in touch with where our power comes from and understand more about how much we are using or abusing."
The Act will make it easier for excess energy to be sold back to the utilities by encouraging energy companies to establish schemes that reward smaller scale generators for their exported power.
It is hoped that opening up the ability to earn money for the sale of electricity produced by these technologies will help to offset the cost of installation and play a part in the expansion of the sector, bringing both environmental and economic benefits.
Other measures in the Act will make it easier for small generators to receive the financial benefits of renewable obligation certificates - the Government's mechanism for the expansion or renewable energy production.
Sections in the bill also call for the greater promotion of local level heat and power projects and a clause calls on community and parish councils to encourage energy saving measures in their area.
A further provision added by the Government will help to open up the development of renewable energy projects on the Scottish islands by extending to 2024 a cap on electricity transmission charges.
Without this potential cap the cost of connecting to the Scottish mainland could prove prohibitively expensive.
The objective of microgeneration is to create a realistic alternative or supplementary energy generation source for householders, communities and small businesses across the country.
Further information
Climate Change and Sustainable Energy Bill
DTI microgeneration strategy
Microgeneration - Green Alliance
Micropower
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