The feed-in-tariff being offered by the British government for clean energy should be the new savings account. One media outlet claims that a £12,500 investment in solar panels will pay a tax-free return of six to eight per cent per year—more than double what one would earn in a typical savings account.

It’s seems like the British government is simply handing out cash to anyone interested in clean energy. According to Jason Orme, editor of the self-build magazine Homebuilding & Renovating, that’s exactly what’s happening.

“With these tariffs the Government is effectively handing out money to encourage people to put these things on their roofs and, quite frankly, anyone in their right mind would be foolish not to think seriously about getting their hands on this green giveaway,” he says.

Prior to the feed-in tariffs, it would take solar panels nearly 30 years to pay for themselves. Now, it will take as little as a decade. Under the scheme, an average homeowner will earn £1,000 a year in savings. And the benefits won’t be short-lived, as the feed-in tariff program is set to run for 25 years and rise with inflation.

The Daily Mail lays bare the details of the subsidy in a recent article: “Solar panels will earn you 41p per kilowatt hour—and mini wind turbines 34p—while large wind turbines and hydro plants earn just 4.5p. The subsidy is variously estimated to cost between £6.7billion and £8.4billion over 20 years.”

It seems everyone is happy. Except of course those stuck picking up the bill for the program: consumers. The Taxpayers Alliance says the subsidies are utterly bonkers and will result in higher energy bills.

The risk? Falling subsidies.

“Buyer beware,” research director Matthew Sinclair told the Daily Mail. “If readers invest in the renewable energy scam on the basis that the feed-in tariffs will pay out big over the coming years, they could get a rude awakening if those subsidies disappear, or are slashed after consumer outrage.”

Energy Probe is a keen supporter of renewable energy. We believe renewable energy has the ability to diversify our electricity supply, while allowing for more decentralized sources of power for consumers. But we’re not in favour of throwing massive subsides at forms of energy that are not technically or economically feasible.

Read the previous gangrene economy report, "Withering In The Spanish Sun" here.