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Thursday, 8 January 2009

Financial incentives for generating your own energy for your community

The ability to produce clean, green energy for our community buildings can help to lessen our carbon emissions and bring down fuel bills. Not-for-profit groups are now able to apply for grants of up to £1m per site towards the cost of installing certified microgeneration technologies such as solar photovoltaics and biomass boilers. Other financial rewards for generating electricity are also available.

The microgeneration grant

The Department for Business, Enterprise and Regulatory Reform (BERR) provides grants to non-profit organisations of up to £1 million per site towards the cost of installation of microgeneration technologies. The grant is delivered through the Building Research Establishment as part of the Low Carbon Buildings Programme (LCBP) Phase 2.

Grants for the installation of microgeneration technologies are available to public sector buildings (including schools, hospitals, housing associations and local authorities) and charitable bodies.

How much are the grants?

Grant levels for the non-for-profit sector vary according to technology and will be applied to total installation costs (excluding VAT) as follows:

Technology Percentage
Biomass 35 per cent
Ground source heat pumps 35 per cent
Solar photovoltaics 50 per cent
Solar thermal 30 per cent 
Wind turbines 30 per cent

Organisations can apply for a maximum of up to £1m in grant funds per site. A site may include more than one property and a maximum of three eligible technologies may be grant-assisted at each property. Multiple applications from one organisation for different sites will be accepted.

The technology must be supplied and installed by LCBP2 Framework Suppliers.

Other financial incentives for microgeneration

Groups that generate energy can also access other rewards for doing it:

  • you can receive Renewable Obligation Certificates (ROCs) or other green energy certificates - which entitle you to money for generating energy
  • you may be able to claim other grants and should contact your council or Regional Development Agency
  • you can also sell any surplus electricity you generate back to the national grid. Contact your electricity supplier for more information
  • some banks and other organisations are offering ‘green loans’ to help with installation costs

Additional links

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