Chance to do a power of good... and pocket up to £1,400 a year

"Micro-generation" devices such as rooftop solar panels and mini wind turbines are expected to become big business over the coming decade, and regional minister Rosie Winterton told an industry convention yesterday that Yorkshire is well placed to become a national leader in the burgeoning sector.

Home electricity generation has been popular in some parts of the world for years but only more recently has it been seen as both desirable and attainable in the UK, with Mr Cameron joining the trend when he famously fitted a wind turbine to his London townhouse in 2007.

Take-up is expected to increase dramatically following a Government announcement last week that from April households will be paid cash for every kW of green power they produce.

Estimates suggest around 750,000 households will take up the offer over the next decade, drawn in by the promise of financial returns of up to 10 per cent and the opportunity to reduce carbon footprints and become more self-sufficient.

Ms Winterton said this will mean "huge commercial opportunities" for the region.

"I think Yorkshire and Humber is very well placed to play a full role in a low carbon economy," she said. "We have a proud history of energy production. Thanks to our geology, geography and a skilled and motivated workforce, we can continue this position as the world shifts to more sustainable forms of energy generation.

"We must make every effort to ensure companies from the region are producing small-scale, low-carbon technology and that our workforce has the skills to install and maintain them. I want Yorkshire and the Humber to be leading in this area."

Right at the forefront is Kirklees in West Yorkshire, where the local authority has found an innovative way to overcome what its Green Party councillor Andrew Cooper calls "the big elephant in the room" – the initial cost of purchasing and installing green energy equipment.

The council has already won national awards for its RE-Charge scheme, which offers Kirklees residents interest-free loans of up to 10,000 for installing green energy devices at their homes.

"The RE-Charge scheme is about removing the main barrier to micro-generation – the up-front costs," said Kirklees' environment officer Vicky Dumbrell.

For people in other parts of the region, the initial outlay remains an obstacle. A 1.75kW solar panel system – designed for the roof of an average semi-detached house – currently costs around 8,000 to buy and install.

Manufacturers, however, insist such a system can now be seen as a long-term 15- to 20-year investment, bringing in an estimated 700 per year in cashback payments and reduced electricity bills. Returns rise to around 1,400 a year for households with space for a 14,000, 3.5kW system.

"It's just under a 10 per cent return," said Andrew Hodchild, managing director of Hebden Bridge solar panel installers Eco Heat and Power. "It's tax-free, it's linked to inflation, and if energy prices go up – which they will – it will get even better."

The new cashback scheme is not just limited to households. The opportunities for businesses and landowners with more space and capital available are considerable.

And even castles and stately homes are getting in on the act. The National Trust has announced plans to halve its fossil fuel usage by 2020, and already has nearly 150 renewable energy systems installed at heritage sites around the country

"We want all our properties to become energy producers rather than energy consumers," said the Trust's Denise Loten.

She highlighted the grade II-listed Gibson Mill in West Yorkshire, now totally self-sustaining thanks to hydro-turbines, thermal panels and a biomass boiler, and the solar panels discreetly installed at historic buildings such as Nunnington Hall in North Yorkshire and Dunster Castle in Somerset.

"Heritage sites can play an innovative role in generating renewable energy, and demonstrate that even the most beautiful sites can contribute to reducing greenhouse gas emissions," she said.

ENERGY CASHBACK – HOW IT WORKS

Households that create their own electricity from renewable sources such as solar, wind and water will receive cash payments for each kW they produce.

These payments are made simply for creating the electricity – even if the household then uses it itself.

Further savings are likely through reduced energy bills.

Any unused electricity is fed back into the National Grid, with a further payment to the household.

The price paid per kW depends on the technology used and is linked to inflation.

But the price paid will drop for people signing up after April 2012, giving people an incentive to install systems in the next two years.

The scheme is also open to communities and small firms.