payments are in addition to the bill savings made by using electricity. Once the microgeneration technology is installed there should be a monthly reduction in the electricity bill, followed by an income from the Feed-in Tariff provider. However, if a loan has been taken out to pay for the installation, monthly payments will be made to the loan company. The Feed-in Tariffs are designed so that the average monthly income from the installation will be significantly greater than the monthly loan repayment (with a 25 year loan). A typical domestic solar electricity system, with an installation size of 2.2kW could earn around: • £770 per year from the Generation Tariff. This is a set rate paid by the energy supplier for each unit (or kWh) of electricity generated. This rate will change each year for new entrants to the scheme (except for the first two years), but once the consumer has joined, the tariff will be the same for 20 years, or 25 years in the case of solar electricity (PV). • £30 per year from the Export Tariff. The consumer will receive a further 3p/kWh from the energy supplier for each unit exported back to the electricity grid, that is when it is not used on site. The export rate is the same for all technologies. Domestic Feed-in Tariff installations are likely to have their export deemed (estimated) at 50% in most cases until smart meters are rolled out. • £120 per year reduction on energy bill savings will be made on the electricity bills, because generating electricity to power appliances means a reduction of electricity bought from the energy supplier. This gives a total saving of around £920 per year – assuming 50% of the electricity generated is exported. The figure will vary depending on how much is exported.
Under the Comprehensive Spending Review the Warm Front grants are being phased out. The elderly and those on low incomes will no longer have access to upfront cash to install energy efficiency measures in their homes. In the meantime, the DECC will fund a smaller, targeted Warm Front programme for the next two years with a budget of £110 million in 2011/12 and £100 million in 2012/13. From 2013, support for heating and insulation for the most vulnerable will be delivered through the Green Deal for energy efficiency and a new obligation on energy companies. At the same time, from April 2011, energy suppliers will provide greater help with the financial costs of energy bills to more of the most vulnerable fuel poor households, through Social Price Support – with total support of £250 million in 2011/12 rising to £310 million in 2014/15. Green Deal is based on a ‘pay as you save’ scheme, which allows home owners to ‘retrofit’ their homes with loft, wall, floor and window insulation up to a cost of £6,500 and make huge savings on their bills, at no upfront cost. Small amounts can be paid back per month based on the savings made on the bills.
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