Renewable Energy

Renewable energy is energy is derived from natural sources which can be 'renewed' or replenished. Sources of renewable energy include sunlight, wind, rain, tides and geothermal heat.

Currently, only around 16% of all natural energy comes from renewable sources - but the market is growing as consumers become more environmentally aware and look for cheaper and more sustainable ways to power their homes.

Solar and wind energy

For householders, renewable energy is currently most popular in its wind and solar forms. But while this is likely to save money on your energy bills in the long term, it will require an initial financial investment, such as installing solar panels (known as photovoltaics or 'PVs') or wind turbines.

The feasibility of powering your home with wind or solar energy will depend on the location, size and type of your home.

For example, if you have a sloping roof that faces roughly south, then solar panels could be an option. But some roofs and angles will not be conducive to PV panels - and you may not have enough land to install them elsewhere.

Even if you do, other obstacles such a nearby trees that block out light, might also deem solar panels unsuitable for your home.

If you are thinking of installing one or more wind turbines to power your home, it goes without saying that a hilly or exposed situation - on or near the coast for example - is best.  You will need plenty of space too as, in addition to finding room for the wind turbine, too many surrounding buildings will disrupt airflow.

Government subsidies are available to help fund the installation of solar panels and wind turbines in your bid for green energy. You can find more information about this at Government-grants.co.uk.

Renewable energy schemes

To really benefit from the cheapest energy that these improvements can provide and start saving money, you will need to tap into the right renewable energy plan.

The government operates a Feed-in-Tariff scheme for each kilowatt hour (kWh) of electricity you produce. This is regardless of whether you use the electricity yourself or feed it into the wider National Grid. There are a few options available under the Feed-in-Tariff scheme.

The Generation Tariff for example, allows you to earn a fixed, tax-free income for every kWh of electricity you generate, even if you use it.

The Export Tariff generates an additional fixed, tax-free income for every kWh of electricity fed back to the grid. You will also receive a reduction in your standard fuel bills.

In all of these cases however, you must use an approved installer, so do your homework before you buy any equipment or sign up to a renewable energy scheme.

Other renewable energy sources

There are other sources of renewable energy to consider too.

Biodiesel is comprised of animal or vegetable-based fat and can be used on its own, or in conjunction with regular fuel, to power diesel engines.

Biomass is derived from biological material from living, or recently living, organisms - forest residue for example. It can be used directly or converted into other renewable energy sources.

Geothermal energy refers to energy generated and stored in the earth.

Hydroelectricity is power generated through moving water.

Nuclear energy is when mass is converted into energy - and is one of the fastest growing renewable energy sources.

These days, it is possible for consumers to tap into all of these renewable energy sources but making sure they are right for you, and that your energy will be cheaper as well as reliable, should be the first step to getting there.