'Cheated' for going green too early

Published on Monday 5 April 2010 23:08

AS GREEN pioneers, Anne and Chris Billing have spent thousands of pounds on cutting their carbon footprint.

But now they are threatening to dump the turbine that delivers energy from the wind to their home in Orkney, claiming they are being cheated by a government that wants home owners to invest in renewable energy.

The UK Department for Energy and Climate Change (DECC) launched a new incentive scheme this month to encourage people to follow the Billings' example.

Hailed by ministers as a flagship initiative for reducing Britain's carbon emissions, the Clean Energy Cashback system will pay 27p for every unit of electricity generated by a small wind turbine.

But the new payments – also called Feed-in Tariffs – will only be paid to householders who installed green technology after 15 July 2009.

People like the Billings, who invested before that date, will receive just 9p per unit.

"We felt we were doing the right thing by taking active steps to reduce our carbon footprint," Mr Billing said yesterday.

"Now we feel utterly cheated by a government that wants to be seen to be green, but at the least possible cost.

"Punishing pioneers like ourselves will save the government a pittance, but has left us wondering why we bothered to invest in renewables in the first place."

Under the old payment system, they received 9p for every unit generated and an additional 10p for every unit fed in to the National Grid. Now they will continue to receive the 9p generation payment – but the fee for units exported to the grid will be only 3p.

"We are being made to suffer a threefold decrease in our export payments, while being denied the benefit of a threefold increase in generation payments," he added.

"It seems so shabby and cynical and that's why we're seriously considering dumping our turbine."

The Billings live in a near perfect location for generating electricity from the wind. Their cottage is surrounded by open fields, with no hills or buildings to impede the breeze.

Installed in May 2008, their 6 kilowatt turbine has generated 20,000 units of electricity over the past 12 months, with 12,000 units fed into the grid.

Had they invested after July last year, they could look forward to a tax-free annual income of more than 5,000 in generation payments alone, an excellent return on the 20,000 they spent on the turbine. Instead they will receive 1,800, dashing their plans to buy an electric car.

Ministers argue that the new subsidy system is designed to generate new investment, rather than reward those who have already taken the plunge into home renewables.

Campaign group YouGen is calling for the same level of Clean Energy Cashback to be paid to all investors in home renewables, regardless of when they installed the technology.

The Tories have pledged to do this if they form the next government.

"It is strange that a scheme that's meant to encourage people to take up microgeneration will punish those who have led the way," said YouGem founder Cathy Debenham.