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So why the sudden interest in solar power?

Well it's not just solar power it's also wind, combined heat and power and others and it's all because the "feed-in-tariffs" for renewable energy mean this sort of small scale investment can generate a healthy (subsidised) profit.

Taking electricity generated by solar panels as an example you get to reduce you bills by directly using the energy produced (around £100 a year) and you then get money for any you sell to the grid. And the whole lot attracts a government subsidy (around £500 a year).

This subsidy is locked in for 25 years (although for other renewable energy sources the tariff is only fixed for 20 years)

This is a scheme that seems to have escaped unaffected by the recent spending review. Although iI expect the government will be reviewing things at some point. With solar power for example that will most likely be when a certain number of panels have been installed across the country.

So for companies, people or councils who can commit to a long term installation this tariff means you should see very good returns. For an average home around £11,000 clear profit. And that's why councils are scouring Google Streetview to see how many south-facing council houses they own and why farmers are being offered money to mix solar panels in with their sheep.

Of course all these figures are just a rough guide and your own solar panel mileage may vary. You should always talk to an independent expert before undertaking any scheme like this and of course the government could change the tariffs on offer at some point in the future.

You may be asking who is paying for all this subsidy? Well technically it's the electricity companies but in reality it's all of us as the costs are likely to be passed onto customers.

The eventual aim of this investment we're all making will be to boost renewable energy produced in the UK and long term also the infrastructure that goes with it. For example if you are tempted by all this you will find solar panels here more expensive than europe because we just don't produce that many ourselves.

If you want to see if this scheme is for you a good place to start is the Energy Saving Trust's calculator which you can find .

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