Plan now for future savings.

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November 28, 2011

In early March, the Government announced details of the Renewable Heat Incentive – a subsidy based scheme to encourage both homeowners and businesses to invest in non-fossil fuel heating systems.

Whilst we are still waiting for further details to be published in May, it is clear that the scheme will support the economic case for switching your primary source of heating and hot water to a renewable form of energy generation. That includes technologies such as ground-source heat-pumps, solar ‘thermal’ hot water and biomass (wood and pellet) boilers.

For anyone running a heating system on oil or LPG, now is the time to start thinking about what savings this new scheme might mean. In many cases the investment case for switching to a qualifying system will be very compelling indeed.

The Headlines

  • Tariff payments will start for homes alongside the Government’s proposed Green Deal from October 2012 and will be in place for 20 years.
  • However, from July this year, up to 25,000 installations will be supported by a one-off “RHI Premium Payment” to contribute to the purchase price of renewable energy heating system.
  • Those taking up the Premium Payment will then be eligible for a RHI tariff from October next year when the Green Deal begins, as will anyone else who has installed eligible equipment since July 2009.
  • To qualify for the one-off RHI Premium Payment you’ll need to demonstrate that you have a well-insulated home (perhaps a little unclear but this will be based on the existing Energy Performance Certificate system).  You’ll also need to agree to provide feedback on the performance of your renewable system.
  • There will be a ‘strong emphasis’ on supporting homes that are ‘off-grid’ and currently using heating oil or LPG – perfect for our area!
  • For new build homes, an RHI tariff will be considered for the 2012 phase.

The key to assessing whether this scheme or indeed renewable energy is right for you is to first gain a full and detailed understanding of your current energy use and then assess what savings, over what period of time an investment in renewable energy could make.

More Information on the RHI scheme can be found at http://www.decc.gov.uk/

Tags : RHI, LPG, biomassboiler,

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