Offset council tax with solar, says British Gas

British Gas has never been an obvious frontrunner in green energy, but the news that British Gas is to start selling household solar panels may herald a change for our biggest supplier of domestic energy. 

In a week that sees the average council tax bill rising by 4.2 per cent, British Gas has announced a new green energy rebate scheme that lets home-owners qualify for rebates on their council tax by using microgeneration and installing solar panes. The plan is being pilotted in Birmingham, the country's largest local authority, where 400,000 householders will be eligible.

If successful, it will roll out nationally. The thinking builds upon schemes already operating elsewhere in the country. Since 2004 forty-four local authorities have offered council tax cuts of up to £100 for customers who insulated their homes. With the addition of micro generation that ante's been upped to a substantial £500 rebate for high functioning solar panels – potentially cutting bills back to pre-1997 levels.

Adam Laidlaw, Chief Executive of parent group Centrica told Reuters that there were committed to clean, green energy initiatives but needed a clear lead from government. 'We're committed to providing low carbon electricity to our British Gas customers' said Laidlaw, 'but before making major investments, the industry needs certainty on the longer-term market framework, particularly the emissions trading scheme and what transitional support is available.' 'Incentives do work, and we would like to see the government supporting this kind of scheme nationally.'

That all important starting gun by government is thought to be the announcement of green measures in tomorrow's portfolio which will be watched avidly by all energy providers.

British Gas' behaviour is more than sideline posturing. It recently signed a deal with Ceres Power to develop domestic fuel cells which would put mini power stations in customers' kitchens. And its announcement of using council tax rebates as its 'carrot' is a clever one. Studies have proven that incentivising good green behaviour works.

Phil Bentley, Managing Director, British Gas, said 'Our council tax rebate schemes have broken through the inertia that holds back the take-up of energy saving measures. We have shown that financially incentivising customers to 'go green' works and we now want to repeat that success with other energy saving technologies.' For today certainly British Gas are the biggest player with the brightest awning but it remains to be seen if they have the efficiency and athleticism of their smaler, committed competitors.

To sign up to the council tax rebate schemes customers should call 0845 971 7731