Today's UK government announcement on incentives for small scale renewables has three unexpected features: a) The payments for renewable heat, such as the home burning of wood to replace gas or rooftop solar hot water, are much higher than predicted.
b) The figures for wind have risen since the autumn consultation document. This means that well-located wind turbines of the 6-15kW size are likely to produce returns above 13% per year.
c) The figures for solar PV have been increased slightly, but do not offer returns as good as wind. Importantly, the government has also signalled that it will allow PV installed at any time over the next 28 months to capture the full feed-in tariff. Previously, the tariff declined for installations made after March 2011.
An earlier article on this topic which looks in more detail on the incentives to take up the new 'feed-in tariffs' is here.Read More