Financial information for Renewable Energy installations

We are all aware of the environmental impact of switching to renewable energy but there is little lucidity surrounding the economic paybacks that installing a renewable energy solution can offer the consumer. This article aims to bring clarity to the subject, whilst providing real-time figures.

Introduced in April 2010, Feed in Tariffs is a government-backed scheme that pays people who create their own electricity via renewable means such as solar PV. Feed in Tariffs are guaranteed to run for twenty five years, are retail priced indexed and completely tax free. Feed in Tariffs support a wide range of circumstances, from domestic to large scale industrial installations, guaranteeing a minimum payment for all electricity generated by the system. A further payment for the unused electricity that is exported back to the national grid, thus consumers can expect to earn back the price of their installation two or three fold in the twenty five years that the tariff runs. For example, a typical south facing, domestic 4kW solar PV installation could earn £1,380 per year from Feed in Tariffs, £50 per year from export tariffs and £220 per year reduction in their current electricity bills, earning the household total of £1650 per year.

While Feed in Tariff covers electricity generation, Renewable Heat Incentive will provide financial support for renewable heating solutions such as solar thermal, biomass boilers and ground source heat pumps. The scheme will be introduced in two stages: the first, due to launch in May 2011, will be Premium Payments for domestic installers. While the level of payment varies throughout the technologies, consumers can expect up to £950 for a wood pellet burning boiler and £300 per solar thermal unit; a substantial subsidy towards the installation of your renewable heating solution. The second phase, Renewable Heat Incentive tariffs, is due to be introduced from May 2011 to the commercial sector, and October 2012 for the domestic market. For example, a small mobile home site, providing hot water via a wood burning boiler for nine units, could receive over £1600 a year in Renewable Heat Incentive tariffs, as well as significant savings from the existing traditional heating solutions.

For more information, please contact Stove Shop Renewables, www.stoveshoprenewabless.co.uk, 01579 345018

NEWSFLASH: Renewable Heat Incentive

What is the Renewable Heat Incentive?

The Renewable Heat Incentive is a fixed payment for the renewable heat you generate yourself

The Renewable Heat Incentive is very similar to the Feed in Tariff, a comparable scheme for electricity which went live in April 2010. The Feed-In Tariffs have done more than anything else to accelerate the installation of renewable energy capacity in Europe. That's why the founders of Renewable Heat Incentive Limited were so active in the campaign to introduce them in the UK. It succeeded and in June 2011 the Renewable Heat Incentive will come into force.

While the Renewable Heat Incentive is very similar to the Feed-In Tariffs, there are some important differences due to the fact that pretty much every single property in the UK generates its own heat from a gas or oil boiler. In other words, there is no ‘National Grid for Heat’ and so importing and exporting heat is not relevant and it will be paid for by the Treasury not by energy users.

There are three steps to the RHI:

Step One: you install renewable heat systems in your property such as solar thermal panels, heat pumps or a biomass (wood burning) boiler

Step Two: an estimate is made about how much heat your renewable energy systems will produce

Step Three: you get paid a fixed amount based on that estimate

Who is it for?

Broadly speaking, the Renewable Heat Incentive is for everyone, including households, landlords, businesses, farmers, schools, hospitals, care homes and more. The RHI can even be used by entire communities, coming together to invest in a renewable scheme from which they will all use the heat and share the income.

Who can claim the tariffs?

Anyone who installs a renewable energy system producing heat after July 15th 2009 is eligible to claim the Renewable Heat Incentive. Virtually every property in England, Scotland and Wales is eligible.

When can I claim the tariffs?

You will not be able to claim the tariff until June 2011. However, any system that was installed after July 15th 2009 will be able to claim the Renewable Heat Incentive when it goes live.

For more information, and to get an information pack sent out to you please either call or email us: 01579345018 or sales@stoveshop.co.uk