Get paid when you invest in generating energy from renewable sources

Introduction

There are currently two key government backed incentive schemes available to the owners of domestic properties.

Please select one of the following options or scroll down the page to read more:

Renewable Heat Incentive

For heating there is the Renewable Heat Incentive Scheme (RHI), which is a government payment scheme designed to encourage people to invest in systems which generate heat from renewable sources.

Renewable Heat Incentive Scheme

Feed-in Tariff Scheme

For electricity generation, there is the Feed-in Tariff (FIT) scheme is a government programme to encourage uptake of small-scale renewable and low carbon electricity generation technologies.

Feed In Tariff Incentive Scheme

Domestic Renewable Heat Incentive Scheme

A quick introduction

The Renewable Heat Incentive Scheme (RHI) is a government payment scheme designed to encourage people to invest in systems which generate heat from renewable sources.

The payment incentives are paid to homeowners, landlords and self-builders as a way to encourage then to move away from using gas, oil or LPG by installing renewable heating systems. Properties which are off the main grid will have the greatest benefit.

There are various heating systems that you could install in your home that qualify for the RHI. These provide either heating, or domestic hot water for the kitchen and bathroom. The three main ones are described below.

Air to air source heat pumps are not eligible for RHI payments.

RHI TechnologiesRHI Rates

Eligibility Criteria for Domestic RHI

The payments only apply to single domestic dwellings

The heating of multiple dwellings need to be applied through the non-domestic RHI scheme. To qualify you must be one of the following:

  • Owner occupier of a single property.
  • Self-builder
  • Registered provider of Social Housing
  • Third Party of a heating system

 

Also you will need to ensure:

  • An Energy Performance Certificate is a requirement
  • Loft and/cavity wall insulation to be a minimum standard of 250mm
  • The installation must be carried out by a MCS Accredited installer Scheme (or similar accreditation) in order to claim the RHI payments

Qualifying Technologies for RHI Payments

You can claim RHI payments, every year for 7 years, if you are installing the following technologies

Solar thermal

Solar thermal panels collect heat from the sun and use it to heat water which is then stored in a hot water cylinder. Both evacuated tube panels and liquid-filled flat plate panels are eligible for the RHI. They are not the same as solar PV panels which generate electricity.

Read More ABout Solar Thermal

Ground source heat pumps and air to water heat pumps

These extract the “latent heat” from the ground or air and provide “wet” space heating and hot water.

Read More ABout Heat Pumps

Biomass boilers

For burning solid biomass fuel and biomass stoves burning wood pellets to provide space heating and domestic hot water.

Domestic Renewable Heat Incentive Rates

As set by the Department of Energy and Climate Change (DECC)

The proposed rates which are set by the Department of Energy and Climate Change are reviewed each quarter. The rates set are index linked and will be calculated for a 20 year period. The current proposal is that householders would receive these payments on a quarterly basis over the first seven years.

Here’s an example of how payment for a small solar thermal system would be calculated.

Let’s say you install a standard domestic solar hot water system. It will output around 1,720 kWh over the year. You will be paid 19.2p per kWh, which works out at 1,720 x 0.192 = £330.24 a year. The heat output may be metered, but is more likely to be ‘deemed’ (i.e. estimated according to the size of the system).

See: https://www.ofgem.gov.uk/system/files/docs/2017/04/drhi_factsheet_consultationresponse_v1.2_published_04_april_2017.pdf

New Build is not included as DECC feel that current building regulations will enforce the use of low carbon heating solutions. Systems heating multiple dwellings are also not included and will be managed within the non- domestic RHI scheme.

See: https://www.ofgem.gov.uk/environmental-programmes/non-domestic-rhi/about-non-domestic-rhi

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Feed-In Tariff Incentive Scheme

A quick introduction

The Feed-in Tariffs (FIT) scheme is a government programme to encourage uptake of small-scale renewable and low carbon electricity generation technologies.

The payment incentives are paid to homeowners, landlords and self-builders as a way to encourage then to uptake the use of Renewable technology.

The scheme requires FIT licensees to make fixed tariff payments for electricity generated and exported to the National Grid.

FIT RatesRead More ABout Solar PV

Eligibility Criteria for FIT

The payments only apply to single domestic dwellings
  • You must have a valid EPC certificate of level D or above before the solar PV system is commissioned in order to receive the higher rate.
  • You must own 25 or less Solar PV installations in order to receive the higher FIT rate.
  • The Install must be carried out using an MCS approved installer such as Abel Environmental
  • The equipment used must be MCS registered
  • You must send in an MCS certificate with your application

Feed-In Tariff Incentive Rates

Qualifying Capacities for FIT Payments

You can claim FIT payments, every year for 20 years. The FIT payment bands are split into the following groups:

Description Total Installed Capacity (kW) Tariff (p/kWh)
Standard Solar photovoltaic receiving the higher rate 0-10 4.07
10-50 4.29
50-250 1.94
Standard solar photovoltaic receiving the middle rate 0-10 3.66
10-50 3.86
50-250 1.75
Standard solar photovoltaic receiving the lower rate 0-10 0.43
10-50 0.43
50-250 0.43

Notes:

  1. Tariff rates are adjusted annually, in line the Retail Prices Index (RPI). The tables below reflect the current FIT year rate for all tariffs.
  2. Deployment caps have applied to the scheme since 8 February 2016.These limit the capacity that can receive a particular FIT tariff rate in a particular tariff period.
  3. The Higher, Middle and Lower tariff rates are only applicable to solar PV installations, the rating is based on if the Energy Efficiency Requirement for the building that the PV is wired to provide electricity to has been met and if the owner has multiple installations:
    • Higher- EPC of level D or above was issued before the commissioning date of the installation, and the owner does not have 25 or more installations
    • Middle- EPC of level D or above was issued before the commissioning date of the installation, and the owner does have 25 or more installations
    • Lower- EPC of level D or above was not issued before the commissioning date of the installation

Your tax free payments after you have registered for FIT will be provided though a registered FIT licensee. Licensees will accredit the installation and make the payments for the electricity you generate and export. A list of the Mandatory FIT Licensees is below:

  • British Gas
  • EON
  • EDF Energy
  • First Utility
  • Npower
  • Ovo Energy
  • Scottish Power
  • SSE
  • Co Operative Energy
  • Utilita
  • Utility Warehouse

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