The renewables industry has welcomed new legislation included in the Energy Bill introducing a feed-in-tariff to encourage small scale sustainable electricity generation.

MPs voted to introduce a renewable heat incentive, although no clear timetable was agreed. The producers of renewable biogas injected into the gas network are now also entitled to tariff payments.

Philip Wolfe, Director General at the REA, said: “The REA is delighted that that government has recognized the advantages of a tariff-style incentive scheme which will open doors for small-scale producers of renewable heat, electricity and bio-methane.

“However the devil will be in the detail and the coming year will herald key negotiations over the nature and size of the benefit each technology is to receive.”

There are no details, as yet, on how and when the schemes are to be implemented. The Energy Bill is expected to be granted Royal Assent next week.