Financial Incentives

In March 2011, the UK Government announced the details of their Renewable Heat Incentive (RHI).

The Renewable Heat Incentive is designed to provide financial support that encourages individuals, communities and businesses to switch from using fossil fuel for heating, to renewables such as wood fuel.

People in receipt of the Renewable Heat Premium Payments will be able to apply for the full RHI tariff support once the scheme is introduced in Autumn 2012, as will anybody who has installed an eligible technology since 15th July 2009.

For further information please contact our office.

What is the Renewable Heat Premium Payment?

This is a UK Government scheme designed to help you afford renewable technologies for your home, such as:

• Solar thermal panels

• Heat pumps ( air source , ground source or water source )

• Biomass boilers

Who can apply for the Renewable Heat Premium Payment?

If you live in England, Scotland or Wales, you are eligible to apply for the Renewable Heat Premium Payment.

No matter how you currently heat your home and how much fuel you already use, anyone can apply for the solar thermal panel funding. However, if you currently rely on oil, liquid gas, solid fuel or electricity then you could also apply for air, ground - or water - source heat pumps and biomass boilers.

So only those who do not currently use gas as their main heating fuel can apply for these technologies.

What do you have to do before applying?

• The property must be owned by you or if you are a tenant you must be purchasing the system yourself and have permission from the owner of the property

• Property must have loft insulation to 250mm and cavity wall insulation (where practical)

• You should have all necessary planning and environmental permissions in place

• Getting your home insulated is actually really easy and relatively cheap, so if you don't already have a fully insulated house, check our Grants and Offers Database for cheap insulation offers or even grants!

Feed-In Tariffs scheme (FITs)

If you install an electricity-generating technology from a renewable or low-carbon source such as solar PV or wind turbine, the government's Feed-In Tariff scheme (FIT) could mean you get money from your energy supplier.

You can be paid for the electricity you generate, even if you use it yourself, and for any surplus electricity you export to the grid. And of course you'll also save money on your electricity bill, because you'll be using your own electricity.

About the scheme

Most domestic technologies (and larger systems up to 5 megawatts) qualify for the scheme, including:

• solar electricity (PV) (roof mounted or stand alone)

• wind turbines (building mounted or free standing)

• hydroelectricity

• anaerobic digesters

• micro combined heat and power (CHP).

If you are eligible to receive FITs you will benefit in three ways:

• Generation tariff - your energy supplier will pay you a set rate for each unit (or kWh) of electricity you generate. Once your system has been registered, the tariff levels are guaranteed for the period of the tariff (up to 25 years) and are index-linked . For a full list of generation tariffs, see FIT payment rates published by the Government

• Export tariff - you will get a further 3.1p/kWh from your energy supplier for each unit you export back to the electricity grid, so you can sell any electricity you generate but don't use yourself. This rate is the same for all technologies. At some stage smart meters will be installed to measure what you export, but until then it is estimated as being 50% of the electricity you generate.

• Energy bill savings - you will be making savings on your electricity bills , because generating electricity to power your appliances means you don't have to buy as much electricity from your energy supplier. The amount you save will vary depending how much of the electricity you use on site.

For more information please contact our office.

Wood-fuelled heating

Wood-fuelled heating systems otherwise known as Biomass systems burn chips, logs or wood pellets to supply warmth within rooms or to power central heating and hot water boilers.

• A stove burns logs or pellets to heat a single room – it may also be fitted with a back boiler to provide water heating as well.

• A boiler burns logs, chips or pellets and is connected to a central heating and hot water system

The benefits of wood-fuelled heating

• Affordable heating fuel – although the price varies slightly, it is often cheaper than other heating choices.

• Low carbon option – the carbon dioxide released from burning wood is very low, the process can be maintained as long as new plants continue to grow in place of those used for fuel.

• Financial support – Wood fuelled boilers could benefit from the Renewable Heat Incentive and the Renewable Heat Premium Payment.