Micro-generators get tax break

If, like "Call me Dave" you hope to install a wind turbine or maybe some solar power panels, this tax breaks for you. It will affect householders who have invested in microgeneration technology and who receive payments from energy suppliers for sale of surplus power.

In next year's Budget there will be measures such that where private householders install microgeneration technology in their home for the purpose of generating power for their personal use, any payments they receive from the sale of surplus power to an energy company will not be not subject to income tax.

Householders are able to make use of microgeneration technology to produce power for use in their homes, reducing their energy bills. In some cases, where households produce power in excess of their own needs, they can sell the surplus back to power companies. Any payments received in respect of such sales are not subject to income tax. Legislation will be included in the Finance Bill 2007 to put this situation beyond doubt.

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