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Cash incentive for households using renewable energy

10th Apr 2014

On Wednesday 9th April 2014 the Government launched the renewable heat incentive (RHI) scheme, paying residents thousands of pounds a year who heat their homes using renewable sources.

The scheme applies to new installations and eligible systems fitted since July 2009. It is open to everyone- homeowners, social and private landlords, registered social housing providers and people that build their own homes.

Not only can you have a warmer home, cheaper fuel bills and reduce your carbon emissions, you can get CASH payments for installing these new technologies

Regular Tax free payments are now available to people heating their homes using certain renewable energy technologies. The scheme is designed to reward households who move away from using fossil fuels such as gas and oil by paying them to generate heat from renewable energy sources such as air or ground source heat pumps, biomass boilers (burning wood pellets, logs or chips), wood pellet fed biomass stoves with a back boiler and Solar Thermal Panels.

RHI payments will be made quarterly over seven years and the amount received depends on the technology installed. The tariff is fixed at the date of installation and is index linked to inflation to maintain ‘real world’ value. 

Installations must be carried out by a Registered Microgeneration Scheme (MCS) Installer and the home must have completed a full Green Deal Energy Assessment with an Approved Green Deal Assessor.

Payments are made on pro-rata estimated energy requirements which are determined during the Green Deal Assessment.

Current Tariffs Per kilowatt (kWh) 
Air source heat pump                                  7.3p x Renewable Heat Generated
Ground source heat pump                          18.8p x Renewable Heat Generated
Biomass boiler                                           12.2p x Renewable Heat Generated
Pellet fed biomass stove with back boiler   12.2p x Renewable Heat Generated
Solar thermal panels                                  19.2p x Renewable Heat Generated

If a home has solar thermal panels in addition to another renewable energy technology such as a biomass boiler they will qualify for two RHI payments. There is an additional payment of £200 year available to households who install accurate heat output meters.

A typical 3 bedroom semi-detached house with average insulation using a 20kW heating / hot water load (determined by the Green Deal Assessment) would provide a tax free payment of £3,285 per year (index linked) for 7 years.       

We are approved Heat and Energy Installers – for free expert advice call Tony or Guy on 01768 890244

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