Microgeneration doesn't come cheap. Due to economies of scale both the products and the installation are still relatively expensive in the UK although this will hopefully change in the future as more technologies enter the mainstream. It is for this reason that the government is offering microgeneration grants with the aim of encouraging more widespread use of these technologies.

The BERR's Low Carbon Buildings Programme was launched in April 2006 to replace the previous Clear Skies and Solar PV grant programme. Part of this programme provides grants to householders to install microgeneration. The deadline for applications to this programme has been extended to June 2010 or as long as funds are available. In charge of the administration of these grants is the Energy Saving Trust.

As with any application the process is not the simplest but we hope to offer a few pointers that will help you assess whether it is right for you in terms of timescale and finances.

1. The deadline for applications has been extended to June 2010 or as long as the funds are available. There is no limit on the number of applications received each month so they are allocated on a first come first served basis as long as the funds last. Although it depends on popularity of the programme, this means it's best to apply as soon as possible before the money runs out.

2. There is a £2500 maximum limit on grants per household. Householders can apply for more than one technology but the limit is still £2500 so it's best to invest in your most viable options. The details of the amount of money available for each technology is listed below. As you can see the amount given for microgeneration of electricity is decided either by the potential power you will supply or a percentage of the costs depending on which is the lowest. For microgeneration of heat there is just a maximum grant or a percentage of the costs.

3. Before you can apply for a grant you have to undertake a number of measures to make your house as energy-efficient as possible. Although this may add extra expense it does make sense: there's no point in funding a microgeneration project if the energy produced is then wasted. And by taking these measures you will be saving money in the long run.

For many of these you can find product suggestions on the Good Energy Shop. In terms of energy efficiency your home should have the following:

• A fully insulated loft to meet current building regulations e.g 270mm of mineral wool insulation or a suitable alternative. If you're looking for a more natural, low-carbon insulation we will soon be supplying sheepswool insulation.
• Cavity wall insulation if you have cavity walls. The Green Home Concierge could help you find the best option for this if you live in London.
• Low energy light bulbs in all appropriate light fittings. For a range of options you can look in the Good Energy Shop lighting section.
• Basic controls for your heating system which includes a room thermostat and a programmer or timer.

In addition the Low Carbon Buildings Programme suggest you get a home energy check to suggest which measures would be most suitable for your home. This can be done by the Green Home Concierge.

4. Householders must have in place the required planning consents before applying to the scheme. More visible installations such as wind turbines are almost certainly going to require planning permission. Smaller installations may also require planning permission. On 6th April 2008 the Government announced new "permitted development rights" to allow householders in most areas in the UK to proceed with solar panel, heat pump and biomass installations without planning permission. The only exceptions to this are listed buildings, areas of outstanding natural beauty and conservation areas.

For more information see the Energy Saving Trust planning section.

To be certain it's best to get in touch with your planning authority as soon as possible and also try to find out if any of your neighbours have shown an interest in microgeneration - this can often help in planning permission if you do need it.

The grants do not allow for delays that result from getting planning permission or other statutory requirements, therefore it's best to get the necessary planning approval before applying for a grant. If the circumstances are truly out of your control an extension of two months will be allowed.

5. Once your home is energy efficient according to above measures you need to obtain a quote for an approved microgeneration product from an approved installer. The Microgeneration Certification Scheme decides these and all Good Energy Shop products and installers are approved.

6. Applications can be made online or with a paper application. However the paper application will take longer to process. After receiving a grant offer letter via email, you can begin installing the technology. However you do not receive the grant until the installation has been completed. Your installer will issue you with a certificate of completion that you submit to the Energy Saving Trust to receive your grant payment.

7. Once you have received an offer there is a time limit for each technology to be installed. This is as follows:

• Solar thermal grant applications will be given 3 months to complete installations
• Wind and solar PV will applications be given 4 months to complete installations
• Heat Pumps and Biomass will be given 6 months
• Hydro will be given 12 months
• Technologies being installed on buildings under construction will have a grant offer validity of 6 months (except hydro which has a 12 month grant offer period)

And of course the sooner you install, the sooner you start making your own energy.

8. After you have completed the installation and you have paid the installer, you can submit the claim documents to the Energy Saving Trust. The grant claim is checked and, if in order, the grant will be issued within 25 working days of receipt of the claim.

In addition to the BERR Low Carbon Building Programme there may also be local grants available in your area. Below are some of the existing funding schemes that we know about. The Good Energy Shop is currently researching this area further and hope to provide an extensive list of possible options soon. However if you know about a local funding scheme in your area it would be great to hear about it on feedback@goodenergyshop.co.uk.

The Gloucestershire Renewable Energy Grant scheme.

Gloucestershire County Council and District Councils have together contributed £110,000 for domestic renewable energy grants in the financial year to 31st March 2009. This will fund 110 domestic renewable energy installation grants at £1,000 each, allocated on a first come first served basis, with a minimum of 10 installations ring-fenced for each District (Gloucester City, Cheltenham Borough, Cotswold District, Tewkesbury Borough, and Forest of Dean District). The Gloucestershire Renewable Energy grants can cover up to two technologies and the scheme is being managed by Severn Wye Energy Agency.

Technologies eligible for a grant from the Gloucestershire Renewable Energy Grant scheme are: solar thermal, solar PV, ground source and air source heat pumps, micro-hydro, free standing (mast mounted) wind turbines, wood fuelled boiler systems and biomass room heater/stove (automated pellet feed).

Like the Low Carbon Buildings Programme grants they do require that certain energy efficiency measures are in place in your home and that the products and installers are accredited under the Microgeneration Certification Scheme.

N.B Residents of South Gloucestershire are covered by the SG Futurenergy grant and Stroud District Council is managing their own grant scheme, through an extension of the WISE Homes grants (see below)

For more information on Gloucestershire renewable grant scheme click here

SG Futurenergy grants

SG Futurenergy is a partnership between South Gloucestershire Council and Severn Wye Energy Agency. It provides an advice service and offers grant support to make installation of microgeneration technologies more cost effective. The grant is for £500 towards the cost of the technology and the installation, and can be used in addition to the Low Carbon Buildings Programme grant.

Technologies eligible for a grant from SG Futurenergy are: solar thermal, solar PV, ground source and air source heat pumps, micro-hydro, free standing (mast mounted) wind turbines, wood fuelled boiler systems and biomass room heater/stove (automated pellet feed).  

Like the Low Carbon Buildings Programme grants they do require that certain energy efficiency measures are installed in your home and that the products and installers are accredited under the Microgeneration Certification Scheme.

Residents in South Gloucestershire can also now apply for a low interest loan towards installing renewable technologies in their home. Up to £3,500 can be loaned at a fixed interest rate of 3% over a 
maximum of 10 years.

For more information on SG Futurenergy Grants and loans click here

Stroud Council WISE Homes grants

Stroud council provides grants for renewable technologies as part of the WISE Homes scheme. The grants are for up to £500 and are for the following technologies: solar water heating system, wood pellet room heater, wood pellet stove or boiler with radiators, ground source heat pump, micro wind turbine, micro hydro turbine, solar PV system

The grants are not normally given for renewable installations that not supported by the Low Carbon Buildings Programme. However they do suggest that if you have an innovative or unusual scheme you should get in touch. In order to apply for you must use products and  installers accredited under the Low Carbon Buildings Programme.

For more information on Stroud Council WISE Homes Grant click here

The Ouse Valley Energy Services

The Ouse Valley Energy Services Company was formed in 2007 by a group of Lewes residents to deliver a range of energy saving, renewable energy and related projects to the residents of the Ouse Valley & East Sussex . It has come from the Transition Town process, and has been founded by members of the TTL Energy Group.

For more information on Ouse Valley Energy Services click here