The British government has taken the initiative to create a policy to encourage the use of alternative power generating technologies. Specifically they are targeting micro generation schemes which means households producing their own energy.

The purpose of this project is to decrease the UK's carbon footprint. The UK has made carbon reduction commitments that it is currently far from meeting. This solar tariff is a way of encouraging householders and private companies to help meet these targets.

To do this a feed in tariff has been created that pays individuals or indeed companies to use green technologies. It will pay you for all of the green electricity that you produce. This will encourage people to install solar panels which will in turn increase local manufacturing of these panels. This should bring down the cost of solar technologies and thus greater encourage the take up of this green technology.

The tariff is guaranteed by the government to run for 25 years at which point it will be reviewed. It is hoped by this point the cost of panels will be low enough to make solar panel installation economically competitive against conventional fossil fuels and by that time is self funding.