investment generally applies to injecting a sum of money into a project with a
view of making a profit. Investing your money comes with risks and there have
been multiple times when investments have gone terribly wrong, where the
capital investment has been lost and all hope of profit gone.
one of the most favoured forms of investment is in property. Typically, when
property prices are at a low they can be expected to increase in value. During the 'property boom' between 1997 and
2006 many people saw a significant increase on the value of their properties;
some making over 100% in as little as 5 years. However, when the UK went into
recession in 2008 property prices fell drastically and this caused many people
to lose their investment and some properties to fall into negative equity.
property prices have reportedly begun to increase once more, people have become
wary about property investment. In November 2011 the government created a new
opportunity for financial investment, Renewable Energy. In the two years since,
the British public have been investing. When questioned about their preferred
investment areas, the British public chose;
Renewable Energy 33%
*The Great British Money Survey, OnePoll 2013
UK Government Carbon
part of the Climate Change Act the UK government are the only country in the EU
to enter a legally binding contract which targets an 80% reduction in
greenhouse gas emissions by 2050. In order to achieve these targets the
government have introduced a number of policies aimed at:
efficiency with the implementation of theGreen Deal,
energy by usingsmart meters
the Green Deal and the introduction of smart meters have made people more
efficient in the way they use energy, low-carbon technologies are where the
significant carbon savings are made. By using renewable fuels such as wood
biomass the aged carbon found in fossil fuels remains locked away while the
carbon released in the combustion of renewable fuels such as wood biomass is
re-absorbed by existing trees and seedlings, thus making it a low-carbon technology.
government has made renewable energy an attractive investment opportunity with
the introduction of significant financial incentives such as the Renewable Heat
introduction of the Non-Domestic Renewable Heat Incentive in November 2011 enabled
commercial, agricultural and industrial business to be paid for the energy they
use (if generated by a renewable source). These payments are greater than the
cost of the fuel required for the heat generation, thus after the initial
payback period, will generate an income. With biomass systems we have seen
estimated payback periods as low as 4 years and a return on investment as high
as 25%; much higher than any savings account.
View a typical
Illustration based on a 199kW wood pellet biomass boiler here.
The RHI is a 20 year scheme and in the first two years Ofgem have accredited in excess of 1,200 RHI applications. 92% of these have been biomass due to the nature of the technology being easier to integrate into existing heating systems. Such a large uptake in the RHI shows a shift in perceptions of renewable energy as a source of investment. Further to this, the Government is set to release a domestic scheme in spring of this year, opening up investment opportunities to the British homeowner.