A government scheme offering cash incentives for small-scale green energy projects has come into effect.

The feed-in tariffs cash-back scheme will give subsidies to families, businesses, farmers and communities who generate their own green electricity.

The scheme will offer incentives on renewable installations up to 5MW in size – equivalent to two large commercial wind turbines.

The tariffs will vary by technology and scale of installation.

Solar panels, micro-wind turbines, water turbines, anaerobic digestors and solar arrays are all eligible for the scheme.

UK Energy and Climate Change Secretary Ed Milliband said: “The guarantee of getting an income on top of saving on energy bills will be an incentive to householders and communities wanting to make the move to low carbon living…