The United Kingdom’s program will include tariffs for wind powerand solar photovoltaic power. As well, Britain will become the firstcountry in the world to offer a feed-in tariff for renewable heat,including solar water heaters and geothermal heat pumps. Thegovernment hopes these tariffs will lead to an accelerated adaption ofrenewable energy throughout the British Isles.
Each tariff will increase with inflation. This is an importantfeature, and one that could have made Germany’s feed-in tariff programmore successful. The tariffs have been calculated to offer a 5-8%return on initial investment, however, with inflation adjustments thatcould rise to 7-10%. Also the comprehensive initiative states that anyincome derived from residential renewables will not be taxable. Thiscould lead to a boon for the residential rooftop solar industry.
Even though critics say this feed-in tariff program does not go farenough, it has the potential to kick-start expansive renewable energygrowth in the U.K., making it a world leader for clean energy.
Read the full story at Renewable Energy World: Britain Launches Comprehensive System of Feed-in Rates