Microgeneration technologies ‘pay back their cost’ within 20 years

Sustainability expert Ian Butterss has predicted that microgeneration could pay for itself in less that two decades if energy prices continue to rise and if the Government were to introduce a carbon tax.

Butterss, who works for consultancy firm Faithful+Gould, said at the Ecobuild exhibition this week that current calculations of how long it will take for renewable energy sources such as solar panels to pay for themselves do not take into account the rise in pace of energy price hikes.

He added that the cost of microgeneration products is likely to continue to fall, meaning that maintenance and replacement parts will cost less.

“None of these technologies pay back their cost if you do not take into account rising energy prices and a carbon tax,” said Butterss.

“It is so important that we get to grips with it. Have a cost analysis without it, and we wouldn’t do any of these things.”

He also pointed out that energy prices have doubled over the past two years, and that it is not unlikely that they could double again over the next five years. Prices are being driven up by increasing demand for energy from India and China, as well as by oil scarcity.

It is expected that the government will introduce a carbon tax in the near future, as all three parties back the introduction of such a scheme.

Prices of microgeneration technology are expected to fall, with some experts predicting that photovoltaic panels will cost just 20% of their current price.