Tax Rebate for Every Clean Energy
Mon., December 12, 2005. 11:13.
Greens publish new proposals - see Publications, MSP Group for the full document
Householders and businesses will get council tax and business rates rebates in return for installing renewable energy devices such as mini-wind turbines and solar roofs, under proposals published by the Greens today. Tax rebates are considered one of the most effective ways of motivating energy consumers, and are also likely to benefit the greatest number of households. (1)
A scheme recommending a one-off council tax rebate of between £50 and £90 for households installing energy efficiency measures has already been proposed by the Energy Saving Trust. Greens say a similar scheme could be adopted for households and businesses installing micropower to encourage everyone in Scotland to benefit from the massive potential of renewables. Incentives for energy efficiency are already in place in some local authority areas. Braintree District Council in Essex operates a scheme that gives £100 rebates on council tax to householders installing cavity wall insulation.
Several financial incentives are among a raft of measures published today by Green co-convener Shiona Baird MSP. The three month consultation on the proposals is the next step for her micropower bill which is designed to dramatically boost small scale clean energy production and move away from centralised fossil and nuclear fuel energy sources. The Greens' bill could help lift those on low incomes out of fuel poverty by delivering substantial savings on fuel bills. (2)
The 'small is powerful' bill document published today (3) includes measures such as simplifying planning rules, enabling micropower households to sell their surplus green power to the grid, and ensuring all new builds incorporate micropower devices. The bill could be key to tackling climate change and fuel poverty, and at the same time would deliver jobs and energy security.
The Micropower Bill proposes legislation that would allow local authorities to give council tax rebates and business tax rebates to households and enterprises that install micropower.
Shiona Baird MSP, Greens speaker on energy, said, "This bill is part of the Greens' vision of a Scottish energy market that helps those on low incomes heat their homes, encourages use near point of production when possible, moves away from polluting fossil fuels, and makes Scotland increasingly self-sufficient. The potential benefits are considerable - not least the jobs that could be created in manufacturing devices such as mini wind-turbines and solar panels.
“A similar Labour bill at Westminster has attracted cross-party support, so I hope that will be the case in Scotland. Many MSPs of other parties have been supportive of these proposals and I think it would be a great achievement for the parliament if we grabbed this opportunity to take action on small scale renewable energy sooner, not later.
"Domestic solar water heating can cut gas bills in half and small scale wind turbines are fast becoming affordable - our electricity bills could be transformed by these devices. At a time when there is such huge concern over oil prices and climate change, it is crucial that we move as fast as we can towards a low-carbon nuclear free economy."
The Green Micropower Bill could also see every new building in Scotland being fitted with solar panels or other renewable devices like geothermal power or small scale wind turbines as a legal requirement. Micropower devices can include small scale wind turbines, solar heating, biomass and pumping underground heat. (4)
The new Green law could also include setting targets for the installation of micro power installations and amending the planning process to make installation of home renewables easier.
Westminster recently approved a Labour backbench bill that could turn every household and business into a small scale power plant. The Commons rejected a second bill however, which would have made it compulsory to install micropower on all new buildings. The Scottish Parliament could now go one better because these measures are included in the Green MSP's bill.
ENDS
Notes
1. Report entitled Changing climate, changing behaviour: Delivering household energy saving through fiscal incentives
The Energy Savings Trust found that ‘council tax rebates ... are the tax incentives most likely to encourage consumer action, and would also be the policy shifts which could benefit the largest number of householders.’
Research reveals tax breaks would encourage more environmentally friendly lifestyles, Energy Saving Trust, 13 Jul 2005. http://www.est.org.uk/aboutest/news/pressreleases/index.cfm?mode=view&press_id=390
2. http://www.braintree.gov.uk/Braintree/housing/energy+conservation/BEAT+the+Cold+Insulation+Scheme.htm
A Dundee housing project with solar air heating set up by Abertay Housing Association has resulted in tenants saving up to £100 pa on their fuel bills.
- 34 housing units (three designed for those with special needs) - system designed to give continuous air-heating, air-cooling and ventilation, buildings kept free of damp and condensation - is estimated to save tenants 33% on their annual heating bills (that is up to £100 pa saved). 70% of tenants are on housing benefit - for low income households in particular this is a substantial saving and will help lift households out of fuel poverty.
3. Consultation closes March 6 2005.
4. What are micropower technologies?
Solar Photovoltaic (PV) panels - Use energy from the sun to create electricity to run appliances and lighting - The average UK home could generate 50-60% of the power needed to supply its own electricity providing it is used efficiently and it has a south facing roof - PV requires only daylight - not direct sunlight - to generate electricity. So it works in Scotland! - The electricity generated by the solar PV panels can be used immediately in the home or fed into the grid to supply other homes. Electricity generated by a household could be sold to the grid or make the electricity meter run backwards, generating electrical credit for that household.
Solar water heating - Solar water heating systems gather energy radiated by the sun and convert it into useful heat in the form of hot water. - Water heating makes up 8% of UK energy demand - Solar water heating typically uses roof-mounted panels to provide 40-50% of a household’s hot water needs - More than half of the UK building stock is suitable for solar thermal water heating
Micro-wind turbines - Micro versions of the turbines used in wind farms. - A typical domestic system would provide 1.5 - 6 kilowatts of electricity, depending on the location and size of the home - Costs around £3000 per kW
Micro-hydro - Hydro-power systems use flowing water to turn a turbine to produce electricity. - A micro hydro plant generates below 100kW of electricity - Improvements in small turbine and generator technology mean that micro hydro schemes are an attractive means of producing electricity - Useful power may be produced from even a small stream. The likely range is from a few hundred watts (possibly for use with batteries) for domestic schemes, to a minimum 25kW for commercial schemes.
Ground source heat pumps - The ground stores heat from the sun during the summer and a few metres down the earth keeps a constant temperature of about 11-12oC throughout the year. - Ground source heat pumps (GSHP) transfer this heat from the ground into a building to provide space heating and for pre-heating domestic hot water. - For every unit of electricity used to pump the heat, 3-4 units of heat are produced. As well as ground source heat pumps, air source and water source heat pumps are also possible.
Biomass - Biomass is often called 'bioenergy' or 'biofuels'. These biofuels are produced from organic materials, either directly from plants or indirectly from industrial, commercial, domestic or agricultural products. - Biofuels fall into two main categories: woody biomass (includes forest products, untreated wood products, energy crops, short rotation willow or elephant grass) and non-woody biomass (includes animal wastes, industrial and biodegradable municipal products from food processing and high energy crops e.g. rape, sugar cane, maize). - There are two main methods of using biomass to heat a domestic property; stand-alone stoves providing space heating for a room (fuelled by logs or pellets) or boilers connected to central heating and hot water systems (suitable for pellets, logs or chips).
Contact the Scottish Greens' press team on 07909 933 074.