With energy prices rising even higher, consumers in the UK should have no problem finding the incentive to generate their own power.  Just last week British Gas made the announcement that prices would rise by an additional 35 percent - further compounding the financial burden. For the poorest families the rise is especially harsh considering the other rising costs of living such as mortgages and grocery bills.  The time has arrived for Britons to seriously consider alternate sources of energy for the home.

There are obvious ways to save on energy bills at home – the thermostat can be turned up a few degrees, or extra insulation can be added, for example – however, others are finding that generating their own power is not only environmentally-friendly, but also dramatically decreases the monthly electric bill.

It’s possible to save hundreds of pounds off your energy bills annually by generating your own power using solar panels, wind turbines, biomass heaters, or geothermal heat pumps.  Consumers can even sell excess energy that is not needed at the home back to the power grid. 

Currently, however, selling excess power is a bit cumbersome but the process will become much easier as smart meters are introduced over the next several years, according to Oliver Wright of the Energy Retail Association.  By automatically informing the power provider how much energy is being consumed as well as informing the consumer how much energy is being generated – smart meters will ensure precise measurements are recorded so proper credit can be given for power generation.

Installing many of these money-saving technologies is currently quite expensive but the Government is offering grants that can cover up to half the cost.  In order to qualify, the prospective homeowner must meet certain standards of energy efficiency – such as full insulation in wall cavities and temperature controls, for example.  Once these objectives are established, you could qualify for a grant of as much as £2500 for a power generation project.  More details and an online application are available at www.lowcarbonbuildings.org.uk.

Now, let’s take a look at the five primary options for generating power at home.

Wind turbines: Even though Tory leader David Cameron was able to install a wind turbine on the roof of his Notting Hill home, wind power generation isn’t suitable for everyone.  In order for wind power to be considered, you must live in an area that has enough wind available to turn the turbine – at least 6 metres per second.  If the wind doesn’t reach that speed you won’t be able to generate enough power to cover the cost of installing the turbine.

The Department of Business Enterprise and Regulatory Reform has a useful tool on its website that allows you to check if you live in an area with the desirable wind speed at www.berr.gov.uk/energy/sources/renewables/explained/wind/windspeed-database/page27326.html.  Where Cameron lives, at 10 metres above ground level, the wind speed is only 4.8 metres per second – so the installation may be little more than a publicity gimmick.

Wind turbines are costly.  A small one costs around £1500 but the savings would only be at most £100 annually even if the wind is adequate.  The stand-alone turbines cost much more – between £11,000 and £19,000 – and would take significantly more time to generate enough power to recoup the investment.

Solar: Solar panels have become a more popular option for generating power at home.  These can be used to generate electricity, or as a way to heat water at no cost.  The average home solar panel system costs between £5000 and £7500 and can trim £230 annually of the electric bill according to the Energy Savings Trust.  The investment is smaller if you choose to install only a solar-heated water system – with the initial investment of between £3000 and £5000 you can save between £50 and £80 a year on energy bills.

According to the Energy Retail Associations, current research in the United States is on the verge of a breakthrough in solar technology that will result in a whole new range of cheaper solar panel systems.  Once these are introduced to market, installing solar panels will become a much more cost-effective option for the average consumer.

Biomass heaters: Biomass heaters use biological material, such as energy crops or wood, to generate electricity.  The material is burned for home and water heating and could save the average consumer as much as £550 annually on heating bills alone according to the Energy Savings Trust.  Typical stand-alone systems require an initial £2000 to £4000 investment.  Before considering installing such a system, homeowners must ensure they are compliant with local building regulations.

Geothermal heat pumps: Just a few metres below the earth’s surface the ground stays at the constant temperature of 12 degrees centigrade.  Simply by installing a simple system of pipes beneath your garden this heat can be harnessed.  The pipes are filled with a mixture of antifreeze and water and arranged in a network of underground loops, which heats the liquid and, in turn, provides heat to the home.  The initial investment costs around £6000 and £12,000 but could generate savings around £900 annually.

Hydroelectric: The final option is to install a water turbine if you have a viable source of running water.  Startup costs are significant – typically starting at £5000 and up to £25,000 – but installing your own hydroelectric power will result in significant energy savings for your home.