The UK Energy Bill, which outlines the introduction of a feed-in tariff system has been given further support, this time by the Chartered Institute of Housing (CIH).

The government will be required to introduce a feed-in tariff scheme whereby small, renewable electricity, heat and gas generators, such as communities, schools and businesses would be guaranteed a premium rate for any energy fed back into grid. The CIH have commended the new clause in the Energy Bill, stating that it will help businesses and communities generate clean, renewable energy.

Sarah Webb, CIH Chief Executive, said:  “A feed-in tariff for renewable energy would give the much needed financial support to communities to take control of their own energy generation.  The opportunities to reduce carbon emissions, reduce fuel poverty and bring communities together to benefit all their residents are enormous.”

It is widely believed that, at a time when people are becoming more aware of the necessity for renewable alternatives, the generation of power in public spaces such as schools and petrol stations will represent a positive social project.

East Kilbride based wind turbine manufacturer Proven Energy has said it wants the government to set a 20p per unit feed-in tariff rate for wind when they are introduced in the UK. Jamie Glover, UK channel manager for Proven, said: “Savings are entirely wind dependent but if they are on a good site, wind turbines pay themselves off in about five years on average, and will continue to make money after that. But feed-in tariffs will decrease the payback time proportionally, and will certainly drive demand.”

“Payback time will depend on what rate is decided when feed-in tariffs are introduced. In Europe there are many different rates but I would hope for a 20p rate for the UK – the payback time for people with small-wind turbines would be greatly reduced” added Glover.

The Energy Act legislation passed in November will see the full introduction of feed-in tariffs by early 2010 and allow small energy producers such as Proven to sell surplus back into the national grid at a fixed rate. Some in the energy industry have reservations about the public awareness of the feed-in tariffs at this point in time, however at is hoped that come the roll out, knowledge of the tariffs will have filtered through the media. Jamie Glover expressed this concern, “Widespread knowledge of the new feed-in tariffs is not available at the moment so we have not experienced a greater interest because of it. But I am sure that clarification of what the tariffs will be, as well as time, will ensure that the public are more aware of the savings and benefits of generating your own electricity.”

However, despite these concerns during the last year there was a 50% increase in public awareness of the new feed-in tariffs attributed to soaring household electricity bills and a general increase in technological knowledge. Proven, which has recently installed a turbine at a school in Leeds certainly believes that by 2010 a 20p tariff rate will make their business viable in the long term.

Financial consultants Ernst & Young have rated the UK as the fifth most popular country to invest in as a result of the Energy Bill which was passed in November according to their Renewable energy country attractiveness indices.

Britain’s rise to joint fifth with Spain has been attributed to recent legislation which specifically sets out provisions for the introduction of Feed-in tariffs by 2010. Feed-in tariffs are fundamental to investors as they guarantee a premium fixed rate for energy fed back into the national grid by small, renewable energy producers.

Also, acting as an important stimulus for investors is the falling value of Pound Sterling which is predicted to reach parity with the Euro in the new year.UK renewable projects increasingly expensive as imported technologies from Europe continue to rise as a result of the exchange rate.

“The falling value of the pound is making

“The declining price of oil is compounding the problem by reducing project revenues as wholesale energy prices fall, resulting in many projects becoming uneconomical. It is unlikely that falling commodity prices such as steel and copper will compensate enough” predicts Head of renewable energy at Ernst & Young, Jonathan Johns.

The recent Renewable energy country attractiveness indices saw Germany reach first position as a target for investors and is now seen as the leading light in terms of viable renewable energy innovations.

Britain‘s controversial Energy Bill was passed yesterday, signalling a significant move towards the use grid connected, renewable energy sources across the UK.

The new laws will see the UK cut gas emissions by 80 per cent by 2050 and open the door for feed in tariffs, with the Government paying owners of grid connected solar and wind systems a premium rate for the energy they produce.

Environmental groups and members of the renewable energy industry have warmly welcomed this new legislation. The Renewable Energy Association released the statement,

“The Renewable Energy Association is delighted that that government has recognised the advantages of a tariff-style incentive scheme which will open doors for small-scale producers of renewable heat, electricity and bio-methane,” Philip Wolfe, Director

It is generally accepted that the progressive feed-in tariff policies of European countries such as Germany, France and Spain have stimulated and accelerated the growth of renewable energies there.