Renewable Energy Solutions 

The Renewable Heat Incentive is the world’s first long term financial support for the generation of renewable heat. It was introduced to encourage uptake of renewable technologies, whilst lowering the UK’s carbon emissions. It is available to any owner of renewable heating system, regardless of whether you’re a homeowner, a Housing Association or a self-builder. The scheme is only available in England, Scotland or Wales. The Installer must be MSC registered. 

 

We are currently in the process of becoming MCS registered. 

The Government has introduced cash incentives to encourage businesses and householders to invest in renewable energy technologies. 

The main sources of funding for renewable technologies are; the Renewable Heat Incentive (RHI) and Feed-In Tariffs (FITs). 

 

The RHI applies to heat producing renewable technologies such as heat pumps, solar thermal and biomass. It is administered by the official regulator Ofgem. 

 

This Scheme supports renewable heat installations in business, industry and the public sector as well as multiple domestic houses. RHI payments are made over a period of 20 years with payments received quarterly. See Ofgem’s easy guide to the non-domestic RHI here. 

 

Tariff rates from 01/04/18 are as follows: 

Worked example, your premises requires 1,000,000kWh/annum and needs 500kW of heat to keep it warm on the coldest design day of the year. A 500kW ground source heat pump is installed with a heat meter, entitling you to receive RHI payments. 

In year 1 the heat meter records 1,000,000kWh as the heat produced by the heat pump 

1,000,000kWh divided by 500kW = the number of hours the heat pump in a year (2000 run hours) 

The payment for the first 1314 run hours is 9.37p x 500kw x 1314 = £61,561 

The payment for the remaining run hours is 2.79p x 500kW x (2000-1314 hrs) = £9,570 

The RHI payments in year 1 are, = £71,131 

Each year the RHI increases in line with the consumer price index (CPI). 

On 9th April 2014 the Department of Energy and Climate Change (DECC) launched the Domestic Renewable Heat Incentive (RHI), the scheme is expected to be open to new entrants until 2020. Once you are accepted onto the scheme then the payments are received for 7 years. 

This is the first scheme of its kind in the world and offers homeowners payments to offset the cost of installing renewable systems in their properties. 

The Scheme is administered by Ofgem, you can see their factsheet on the domestic RHI here. 

In essence, households will be paid the following tariff for every kWh of renewable heat generated by a supported technology, the tariff is paid quarterly over a 7 year period by OFGEM direct to the customer. 

Current tariffs with effect from 01/04/18 are as follows: 

Each year the RHI increases in line with the consumer price index (CPI). 

 

FITs provide ongoing payments to owners of renewable equipment which produce electricity, such as solar photovoltaic (PV) panels. hydro and wind turbines. For further details and current tariff tables please see http://www.ofgem.gov.uk/environmental-programmes/feed-tariff-fit-scheme/tariff-tables.