A new Government scheme is making going green a little less expensive.

The Solar Photovoltaic Rebate Initiative, which launched yesterday, will offer residents a rebate of up to $5,000 for the instillation of solar panels.

Rebates are offered at $1 per watt up to a limit of 5,000 watts, or five kilowatts, per home.

A single solar panel can produce more than 300 watts from sunlight.

The Department of Energy spokesperson said that initiative will continue until the funding, $500,000 according to the 2009/2010 Budget, runs out.

The spokesperson said: "The subsidy programme is designed to encourage hundreds of homeowners to install photovoltaic systems on their property and to stimulate the local solar instillation market."

Tim Madeiros, owner of Alternative Energy Systems Ltd, worked as a consultant on the initiative. He said he hoped the rebate would help people make the step away from fossil fuels.

"From what I've heard, the initiative is well received. I really hope it will encourage people to make the commitment."

To receive the maximum rebate, Mr. Madeiros estimates that around 20 of the most efficient panels would need to be installed. That number of panels would take up around 290 square feet of space and cost approximately $40,000, depending on instillation fees.

In addition to the rebate, the solar panels could generate other savings. Mr. Madeiros believes they can produce enough energy to reduce a home's energy bill by as much as $400 a month.

"The cost of electricity is back on the rise," he said. "Right now, the panels would pay themselves off in five to seven years."

Not everyone will be able to take advantage of the rebates, however.

"Obviously, there are some restrictions," Mr. Madeiros said. "Area restrictions, budget restrictions — and if you don't require a lot of energy, it really doesn't make a lot of sense."

Tim Miller, who has already installed solar water heating panels in his home, applauded the plan.

"I think it will encourage some. I really don't see it leading to widespread adoption yet, but it will encourage some," he said. "I think there's still a need for education. There's a learning curve for instillation and for maintenance."

Mr. Miller does believe that the Island will be able to adopt clean energy, but he said that it would take time. "We look after our own water supply, so we should be able to look after our own energy supply. Of course, the water didn't come overnight, and neither will the energy."

He also expressed hope that the incentives will eventually encourage other clean technology, such as electric vehicles.

Robin Gray, who has long supported the adoption of alternative energy, also praised the programme, calling for similar incentives to encourage those who adopt wind power.

"I would hope that people who pushed for this are also pushing for wind turbines," he said. "They're less obtrusive than a satellite dish, and they run completely silently."

While solar panels would require almost 300 square feet to produce five kilowatts of energy, Mr. Gray said that a vertical wind turbine could produce the same energy and take up only four square feet, standing six feet tall.

The Department of Energy said that the initiative was a step forward but public involvement is needed.

"The Government alone cannot reduce Bermuda's dependence on fossil fuels," a spokesman said. "We need you, the public, to step up and to take advantage of this rebate initiative so that together we can achieve a secure and sustainable energy supply for Bermuda."