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Can Microgeneration Save Money On Your Home Utilities?

People who have become increasingly fed up with the rise in electricity prices in recent times have already switched their supplier to a cheaper alternative but there?s even more good news with some suppliers now prepared to pay for any surplus energy that a household generates itself which can then be sold back to a supplier.

DIY electricity generation is on the increase and there is estimated to be somewhere in the region of 80,000 households who are generating all or some of their own electricity supply in the UK by using rooftop wind turbines and smaller solar powered units. This figure is set to grow now that B&Q have also started selling these kinds of power generators.

To buy a typical wind turbine and have it installed costs around ?3000. Larger systems which would enable you to generate enough electricity to sell some back to the supplier could run anywhere between ?4000 to ?18000 depending on the size. A cheap loan could lead you on the path to self-sufficiency when it comes to power generation and the Government are doing their bit also by offering grants and tax breaks for those who are keen to take up the cause.

Usually, a grant is only given providing that you have already ensured that your home is already as energy efficient as possible but if you qualify, the grant can cover up to 50% of the cost of installing solar panels and up to 30% for other equipment. If you don?t qualify, a cheap loan might be another alternative.

There is still a lot of debate over whether or not microgeneration of this kind will ultimately save you money in the long run. Set up costs aren?t cheap and it may be many years before you?re able to reap the savings benefits.

A meter is installed which works out how much energy you are using and how much is being sent back to the supplier so you can easily work out how much you can save on your energy bills. NPower and Powergen are currently the suppliers which pay you the most for any surplus energy you generate but other suppliers are also getting in on the act. And, even if you?re not generating enough power to have any surplus left over to sell back, you will still save on your energy bills. For example, a 1.4 kw wind turbine with an annual output of 2000 kwh could supply around 60% of the consumption of the average UK home which represents a saving of ?200 a year.

Microgeneration isn?t a quick fix solution to the problems of rising electricity costs. However, for those who wish to take action in making the switch to a self-sufficient lifestyle and can afford to do so, the solutions are already out there and being taken up by those who view it as a long-term investment.

Nigel Cooper is a writer for several money saving and finance sites. You can read more of his opinion on low cost finance and cheap loans on http://www.niceloans.co.uk

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