There had been much speculation about the future of renewable energy incentive schemes leading up to the Comprehensive Spending Review on 20th October.  The feed-in tariff (FIT) cashback scheme for electricity, which came into force in April 2010, was rumoured to be facing cuts, and the Renewable Heat Incentive (RHI), the analogous scheme for heating waiting to be implemented, was allegedly not going to see the light of day.

But when it came down to brass tacks, the coalition government proved to be more of a friend to microgeneration than we had feared.  The feed-in tariff continues as is for now, with homeowners installing eligible solar PV technologies receiving cash back for electricity generated and sold back to the national grid. 

The upshot is that if you are thinking about solar PV you are best moving as quickly as possible, as you can lock in a higher FIT payment for 25 years.  This higher payment is guaranteed until 31st March 2012.  The plan is for the government then to review the amount of payment and the qualifying technologies, with the idea of making changes to the scheme beginning in 2014.

The RHI, the planned cashback scheme for heating, is set to come into effect in 2011-2012.  The Comprehensive Spending Review didn’t give any specifics with regard to what the payment terms will be, but it earmarked £860 million in funding.  Further details are expected to emerge in coming months.