Energy Bill Announcements Reveal Cost of Renewable Energy Deployment for Consumers

by Jarrah Harburn on November 28, 2012

Solar panels

The UK Government’s Department of Energy and Climate Change has revealed the first details of the much anticipated Energy Bill. The Energy Bill is essentially designed to encourage investment in green and renewable energy such as solar panels and wind turbines, whilst ensuring the power keeps flowing for all.

Full details of the Energy Bill are being published in parliament next Thursday but the initial feedback is generally that increases in energy bills due to uptake of renewable energy will be manageable. Further to this, the eventual savings brought about thanks to sources of renewable energy being commissioned will bring down energy bills in short succession from temporary increases.

Impact of Renewable Energy uptake on Energy Bills

The current DECC estimates have that solar panels and renewable energy measures as a whole make up £20 of the average £1,249 annual bill that consumers pay. The Energy Bill allows energy retailers to triple the amount of money they add to consumers’ bills to pay for nuclear, renewable energy and environmental considerations.

Climate Change minister Ed Davey was quoted as saying that any reports that suggest the average bill of increasing by over £100 due to renewable energy deployment were “utter rubbish”.

It is a £7.6 billion increase by the end of the decade, which goes some way to indicating the budget energy companies are working with regarding investment in solar panels, wind turbines, biomass and other renewable energy technologies.

The other side of the coin expressed by the DECC is that by the time we reach 2020, the renewable energy measures that have been invested in will have reduced bills by the £60-£80 they are set to increase them by. The latest estimates from Mr Davey indicate a £94 decrease in bills by 2020 via these projections. Reliance on fossil fuels which grow increasingly more expensive are the major part that has to play in this.

Fossil Fuel Cost Increases Catching Renewable Investment

Ultimately, the impact that solar panels and their subsidies are having on bills, as part of the greater renewable energy encouragement by the Energy Bill, is expected to be more than manageable.

The DECC have effectively projected that £94 would be added to everyone’s bills without solar panels and renewable energy measures being deployed. With the projected costs of this renewable deployment being under £100; it would appear that the tide is turning towards the UK being better off with renewable energy and it’s subsidies than without.

Written by Jarrah Harburn

jarrah@solarselections.co.uk

020 7205 2267

© 2012 Solar Selections Ltd

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