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What is the Renewable Heat Incentive?

The Renewable Heat Incentive is a first in its kind initiative from the Government intended to help reduce the UK's carbon emissions and to protect the environment through offering a financial reason for people to generate their own heat energy from renewable sources.

Announced early in 2010 and due to come into action in the domestic market in October 2012, the RHI legislation is similar to the electrical Feed In Tariff. It will pay you at set tariff rates for all the renewable heat energy you generate at home, at your workplace, or within your community, even if you use that energy yourself.

Whilst the RHI isn't due to start till October 2012, as an installer following the Microgeneration Scheme, we will ensure that any installation we undertake for you in the meantime will automatically pre-qualify for the scheme.


What it pays

There are various incentives for all the different Microgeneration technologies as detailed in the table on this page, but all repayments to you will be made annually based on your system performance, they will be inflation-linked and tax free, and the tariffs will repay you for up to 23 years!

What's more, according to Government figures, the tariff levels have been designed to earn an average 12% return p/a for heat pumps and 6% on solar heating systems, meaning that your initial capital costs invested should be earned back with plenty of interest over the respective tariff periods.

The scheme however, has still not been finalised, but for a typical solar thermal heating system installed into a domestic home we would expect repayments of perhaps £250-350 p/a, plus gas or oil cost savings additionally.

For a typical heat pump installation we believe repayments of £1,000-1,500.


Interim Payments

The government has also said that any project completed between now and the start of the RHI in October 2012 will receive an Interim payment towards the installation cost of a particular renewable technology. These are outline below:

Solar Thermal - £300/unit

Air Source Heat Pumps - £850/unit

Biomass boilers - £950/unit

Ground Source Heat Pumps - £1250/unit

Renewables

We specialise in the installation of solar thermal, ground and air source heat pumps.

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The Green Deal

As part of trying to support the installation of renewable technologies the government is also trying to support energy efficiency within our homes. The government are planning to offer funding towards trying to reduce the energy load on properties and businesses throughout the UK.

The idea is that with the money that you will save on reducing your energy bills will be used to pay back the Green Deal Loan.

We aim to work very closely with all trades so that we can form a solution to everyones growing need to reduce bills and emissions.

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