Incentives for Green Power
09 Feb 2010
The UK Government has just announced income tax benefits for all domestic power users who install wind and solar power who feed their surplus back into the national grid.
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The UK Government has just announced income tax benefits for all domestic power users who install wind and solar power and who feed their surplus back into the national grid.
In the Pre-Budget Report given by the Chancellor back in early December 2009 he announced the fact that the UK Government were considering not taxing income from renewable energy systems.. The Treasury have subsequently confirmed that both the generation and the export element of the tariffs will be exempt from Income Tax for householders who install systems mainly for use at home.
In real terms this means that people with a home wind turbine or a photovoltaic system that is capable of feeding power back into the national grid could be earning an average of £900 per year tax free. It is hoped that this will be an incentive to encourage average households to play a part in finding solutions to climate change by installing small-scale renewable energy generators.
At the time it was noted that low income families may not be able to benefit, because of the relatively high cost of installation of these systems . In the Pre-Budget Report the Government expressed the wish for all UK households to be able to play a part. In order to achieve these ends they are undergoing a process of consultations that will explore ‘Clean Energy Cash-back’ and ‘Pay as You Save Financing’.
In some areas of the country there are grant schemes for domestic use or private funding opportunities for ‘not-for-profits’ and ‘good causes’ — the following sources may help you track down what is available in your area or can tell you about developments on the home green energy news front.
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