For those considering investing in a solar panel system for their home, a tax-free, index-linked return of 10 per cent per year, over a guaranteed 25 year period, is now available. Those who used most electricity, such as the retired or those who work from home, stand to be benefit most from the scheme.

The new government scheme has been designed specifically to help encourage an increase in uptake of renewable energy amongst homeowners. The Clean Energy Cashback Scheme is being offered by the Department of Energy and Climate Change (DECC).

The cashback scheme is also known as the Feed-in tariff and went into operation in April. It replaces the old system of grants for solar panels, which have now been abolished. People will now be rewarded for every unit of energy generated by the solar panels they install. In addition, energy firms will be legally required to buy back any excess energy generated.

To qualify for the scheme, homeowners need to install solar photovoltaic panels, which are known as solar PV. These cost between £8,000 and £14,000.

Charlotte Webster, a public relations manager at Solar Century, which provides solar panels, explained that the greatest financial savings for using solar power will go to those who generate most electricity. She said: “This means the retired or those who work from home get the best return on investment because they get the saving on their electricity bill as well as the feed-in payment.”