Constant government and media coverage of the environmental impact and potential energy shortage in the United Kingdom has driven commitments and pledges. It is a fact though, that as pressure is applied to nations internationally, the demand for carbon neutral energy will continue to be high. Current targets such as the government’s 15% of energy generated from renewable resources by 2015 mean that there is a massive amount of capacity for installations both large and small.

The Long awaited detail for Feed in Tariff (FiT) rate have now been released. This has caused the existing Phase 1 and 2 Low Carbon building Program to cease earlier than the predicted April 2010 cut off. This was due to the large increase in grant applications that were filed earlier this year. The loss of the LCBP grants has been over shadowed by the commitments made to FiTs. The table below details the rates which came into effect on April 1st 2010. This return on a generators investment is fantastic news in itself but there are still further points to note.

• the FiT rate is guaranteed for a predetermined period.
• The rate is index linked.
• Vat is charged at 5%.
• The electricity can be used on site to offset electricity bill.
• The “spill” (excess electricity) can be sold back to the energy supplier.
• There is no income tax on income from domestic installations.
• Capital investment can be written off in the first year on commercial installations.

Additional grants may still be available locally, so if you are thinking of installing a generator then ask around. These grants don’t tend to last long and therefore you will need to be committed to a completion date.