This affectively means that (contray to some speculation) the feed in tariff rate remains unchanged for the time being.

However, a review will be conducted in 203 which will aim to reduce Government subsidies by 10% by 2014-15. The full details won’t be known until 2013, but those who take advantage of the tariff before this review should not be affected.

The Government also announced that it reserves the right to bring forward this 2013 review if there’s a sudden surge in new installations, which affectively means they may make the 10% cut early if budgets are strained by higher-than-expected numbers taking up the tariff.

Don’t forget – your rate is guaranteed for 25 years at the point of installation. Those who install solar panel up untill the point the feed in tariff is reduced, will still benefit from the current 41.3p per kw/h and this will remain unchanged for their 25 year period.

The advice is to apply now in order to take advantage of the current rate. It seems likely that the tariff will be cut by around 10%, but with definite date as to when this could happy, it could be sooner than we think.

The study, led by EDF Energy, found that over 70% of households in the UK have now installed energy saving measures such as home insulation.

This represents a significant increase over the last three years, with many homes taking advantage of government grants available increase their energy efficiency.

We are, however, still falling behind our European neighbours when it comes to using sustainable methods for generating energy.

Spain came out top, with more of its energy generating from sustainable sources (the UK ranked 6th).

COO of EDF Energy, Eva Eisenschimmel, suggests that Briton’s should take advantage of funding available for microgeneration, and avoid wasting energy within the home:

“Make choices about whether your home is powered by renewable energy sources and low carbon electricity, as well as choices around the management of appliances in your home – making sure that you don’t waste electricity through leaving things switched on when they’re no longer used or on stand-by overnight.”

With the recent introduction of solar feed in tariffs, and the announcement of the first stage of the microgeneration initiative being launched, using renewable sources of energy should become more accessible over the next 12 months.

The Department of Energy and Climate Change (DECC) is to review a range of incentives in order to encourage more people to generate electricity and heat through solar, wind and geothermal technologies, in line with it pledge to reduce carbon emmisions by 20% by 2020. Cavity wall and loft insulation grants have already helped millions of households to reduce emissions and cut energy bills.

Demand for solar PV and solar panels has dramatically increased since the introduction of feed-in-tariffs in April. Many companies are being swamped with enquiries as households look to take advantage of payments in return for every Kw/h of renewable energy they produce. Around 100,000 homes have already installed solar panels, with demand forecast to rise further over the next 12 months.

‘I want to see more homes, communities and businesses generating their own energy. We can literally bring power back to the people. Microgeneration is a key part of this vision,’ Climate change minister Greg Barker says.

Those looking to generate electricity via solar photovoltaic panels are set to benefit the most from the microgeneration initiative, with a range of further incentives being planned. Those who have already installed the techology since April, or are looking to do so soon, are being assured that any further incentives will still apply to them.

Find out more about solar feed in tariffs.

Apply for a cavity wall or loft insulation grant.

With the introduction of the feed in tariff last April, solar panels can generate a return of around 10% on savings. The paper has advised readers to consider using this as a way of beating interest rates of around 1-3% offered by most highstreet banks.

Despite recently announced spending cuts, the coalition government has confirmed it will maintain funding for the feed in tariff in order to encourage households to switch to generating their own renewable energy.

“Given that the income is tax-free, the return on a £14,000 investment is equivalent to 12.9% for a 50% tax payer and 10.3% for a 40% tax-payer, with the investment recouped in as little as seven years. As the payments are linked to RPI, this equates to a real return of 18.2% and 15.6% respectively at today’s RPI rate of 5.3%” reports The Sunday Times.

Solar-feed-in-tariffs.co.uk has a network of approved solar specialists who’ll provide a free survey of a propety to assess its suitability for solar panels. The free services matches the user to a solar contractor, based on their project, location and property.

Many are unsurprised by the high level of interest, given the generous incentives to home owners taking up the scheme. Although still only available to those prepared to part with around £10k, the return can be around 9% a year, presenting a highly desirable alternative to current interest rates.

It’s generally expected that numbers will continue to rise, with manufacturers looking to double their output of solar panel systems in 2010.

It’s predicted that solar panel installations will rise to around 13 gigawats this year, up from 8 gigawatts in 2009.

As more people take up the incentive to be paid for the energy they generate, manufacturers of solar photovaltaic equipment are planning to increase production inline with demand/

Whilst in British homeowners can expect to receive around 36p per k/wh generated, Italians can earn around 45p per k/wh.

The UK is currently on track to cut it’s nationwide carbon emissions by 20% in 2020, partly thanks to the increased funding available for households to increase the efficiency of their home.

Lord Smith is backing the plan, and says that only those who lead extravagant lifestyles would be affected. The scheme would also involve a rebate if credits are left unused, meaning those who forgoe the car in favour of a bike, or who use renewalable forms of energy to heat their home, could get money back.

Small business owners argue that they will be forced to buy extra credits, at a time when many businesses are already finding it difficult to pay existing taxes imposed by the Government.

If the plan does go ahead, it will place an even greater emphasis on ensuring that houses are well insulated, and any heat lost through lofts, windows and wall is minimised.

What do you think about this new plan announced by Lord Smith? Should the public be forced to pay a ‘green tax’ at a time when the country is also already struggling to meet the increasing cost of energy bills?