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Some useful facts about the cost of renewable energy

Posted by Cathy Debenham on 19 July 2012 at 3:24 pm

The press is full of misleading (often just downright wrong) information about the cost of renewable energy and the amount it contributes to our energy bills. So we should all be grateful to Merlin Hyman at RegenSW who had dug out the facts, and referenced them all. Here's an extract from a recent newsletter he sent out to members.

The average combined electricity and gas bill is about £1,000. The cost of the renewable obligation and feed-in tariff in 2010 was £18 per bill payer (p.62 of Estimated Impacts of Energy and Climate Change policies on energy prices and bills, DECC - clicking will download the document) 

In contrast, if you divide the £6.93bn of taxpayers money given to the Nuclear Decommissioning Authority in 2010-2011 by the 26.3 million households in the country you find the annual cost per household of nuclear waste is £260.

Between 2004 and 2010, dual fuel bills rose by £455, of which £382 was due to soaring gas prices (The Guardian)

Globally subsidies for fossil fuels are $409 billion compared to $66 billion for renewable energy (Bloomberg New Energy Finance - clicking will download slides from a keynote address).

Thanks Merlin.

Photo by Shalom Tescubia

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Comments

1 comments - read them below or add one

Chrisso

ChrissoComment left on: 19 July 2012 at 10:32 pm

Solar Century had a different figure:

"DECC assume 26 m households and crucially don't forget that the levy is raised from all bill payers not just households ie all non domestic payers including all businesses, all public sector bodies etc etc.  The percentage of the total that falls on households is 36%. The £128m number over 2 years is taken from the Ofgem quarterly reviews. So it's £128m x 36% divided by 26m gives you a consumer cost of less than 90p per year per domestic household for first 2 years of scheme and for all technologies."

So which figure is correct? 90p or £18 per household?

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