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Renewables growth through government schemes

The world is in dire need of converting the vast majority of its power sources to non carbon emitting sources within the near future. Renewable energy sources are the most ideal source of this as they produce no carbon dioxide in their operation. So it is good to see that some governments are encouraging the use of renewable energy sources by providing financial incentives and reliefs to their population. A very recent example of this kind of incentive is the new renewables tax measures implemented by the government of the United Kingdom. This has involved the scrapping of the 5 percent Value Added Tax (VAT) currently applied to homeowners who want to install solar panels, insulation or heat pumps in their homes.

Improvements from British government

This is a great move from the UK government as it encourages growth in the renewable energy sector and reduces the cost of energy. This is a controversial topic at the moment in the country due to rapidly rising prices as a result of Russia’s invasion of Ukraine and the resulting oil market fallout. Unfortunately this measure is not a permanent one. The measure will be in place for five years from April 2022 until April 2027. So if you are a UK resident it may be time to invest in making your home more energy efficient before this tax break runs out!

This is the newest of the British government’s financial support of sustainable energy practices and energy efficiency. Last year, the UK prime minister: Boris Johnson announced that UK homeowners would be eligible for a £5,000 grant if they would install a heat pump in their home. The installation of a heat pump is a good way of making your home more energy efficient to heat and cool, when compared to traditional central heating seen across the UK. Unfortunately the overall price of heat pumps is around £15,000 to £20,000: quite a steep cost for the savings seen.