Renewable Heat Incentive

Renewable Heat incentive

Renewable Heat Incentive

Renewable Heat incentives are being introduced in June 2011 to start to encourage home owners to reduce their home heating energy bills and carbon foot print. The scheme will provide a government-backed 20 year payment scheme for generating heat from renewable sources

Benefits of the Renewable heat incentive

  • One off payment contribution by the government
  • 20 year tariff providing long term financial incentives
  • Get paid 0.085p per kWh for the next 20 years
  • Save money by reducing energy bills

Following the current success of the feed in tariff scheme which provides incentives for solar electricity, it is hoped that the government renewable heat incentive scheme will have the same success at encouraging investment into renewable sources of heat like that obtained from home solar heating systems.

There will be two phases of the renewable heat incentive scheme, helping to encourage the use of renewable sources of heat in homes throughout the UK.

Renewable Heat Incentive Premium Payment (RHI Phase 1 launching in June 2011)
£15m of funding is to be made available for home owners who wish to invest in technology which produces heat from renewable means.

The Department of Energy and Climate Change, have said that home owners who have invested or are planning to invest in technologies that are capable of harnessing heat from renewable sources, will be eligible for a one off payment incentive from the government’s renewable heat incentive premium payment scheme.

Renewable Heat source technologies included in the scheme and estimated payments

  • Solar thermal heating systems £300 per unit
  • Air Source Heat Pumps £850 per unit
  • Biomass boilers – £1000 per unit
  • Ground Source Heat Pumps – £1,300 per unit

For enrollment into phase 1 of the renewable heat incentive scheme, there will be further details given by the department of energy and climate change nearer to the time of the launch in June 2011. Please check back with us soon….

Renewable Heat Incentive Scheme Tariffs (RHI Phase 2 available from October 2012)
A 20 year renewable heat incentive tariff is to be introduced in October 2012 for domestic use providing 8.5p per kWh for hot water and heat generated from renewable sources. Systems installed from the 15th July 2009 onwards and that have qualified for the renewable heat incentive offer will be eligible to the tariff scheme.

Return on investment will you profit?

Yes the government estimates a return of around 10-12% per annum meaning in around 9-10 years the investment made in solar heating panels would be paid for in full by the renewable heat incentive tariff. The remaining 10-11 years would then continue to provide a substantial amount of profit, the actual amount would depend upon the size of the system originally installed.

If you would like to find out more about the renewable heat incentive scheme and how a solar hot water heating system could benefit your house, contact us today to arrange your free no-obligation home solar energy survey. We guaranteed to put you touch with 3 fully certified and reputable solar heating surveyors in your local area.

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