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

Smart Export Guarantee (SEG)

The SEG is an opportunity for anyone who has installed one of the following technologies up to a capacity of 5MW or up to 50kW for Micro-CHP.

  • Solar Photovoltaic (Solar PV)]
  • Wind
  • Hydro
  • Micro combined heat and power
  • anaerobic digestion

Homes that generate excess renewable electricity into the grid are now guaranteed a payment under the new scheme.  You have to be signed up to a SEG Tariff with a utility company, otherwise you will not be paid for your electricity and will export any you generate but don’t use to the National Grid for free.

Smart Export Guarantee Rates

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

Get a Free RHI Appraisal Today

Contact us today and we can discuss your RHI options.

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Smart Export Guarantee (SEG)

A quick introduction

The smart export guarantee (SEG) is an obligation set by the government for licensed electricity suppliers to offer a tariff and make payment to small-scale low-carbon generators for electricity exported to the National Grid, providing certain criteria are met.

To access a smart export tariff under the Smart Export Guarantee, there is a requirement to provide evidence your installation is MCS (or equivalent) certified: “To benefit from the SEG, exporters must be able to demonstrate to suppliers that their generating equipment, and its installation, has been adequately certified. This in practice means providing evidence that they are certified to MCS or an equivalent standard”.

SEG RatesRead More ABout Solar PV

Smart Export Guarantee Criteria

The payments only apply to single domestic dwellings
  • The Installation must be carried out using an MCS approved installer such as ourselves
  • Have installed solar pv (Solar PV), wind, micro-combined heat and power (CHP), hydro and Anaerobic digestion
  • Your installation must be 5MW capacity or less (50KW for micro-CHP)
  • You will need a meter that can provide half hourly readings for electricity export.

Smart Export Guarantee (SEG) Rates

Which is the Best Rate?

According to the SEG, energy suppliers with over 150,000 customers must offer an export tariff with a rate greater than zero. The SEG is available for customers with an MCS-certified renewable energy system under 5MW and a smart meter

The rates which are paid to you as a customer vary from supplier to supplier.  You will need to contact your energy supplier to establish what competitive rates are on offer.  We advise that you shop around for the best rates.

It is not always necessary to remain with your current supplier to obtain your SEG rate.  You can be contracted with one company for your electricity that you  buy and another to sell.

We would currently recommend Octopus for your SEG (although this can change so please carry out your own research).

Octopus are  currently offering two types of tariffs:

Outgoing Octopus – Fixed or Agile. Outgoing Fixed guarantees 5.5p per kWh for every unit you export. Outgoing Agile matches your half-hourly prices with day-ahead wholesale rates,

helping you make the most of the energy you generate.  Click on the following link for more information.

https://octopus.energy/outgoing/

*Other suppliers are available.

Which Companies have Smart Export Guarantee tariffs?

  • Large companies with more than 150,000 customers have to offer a SEG tariff.
  • Smaller companies and non traditional energy companies will also offer a SEG tariff
  • Companies are obliged to offer the SEG Tariff to all eligible installations, not just there own customers.  Therefore, you can choose a different supplier to sell your renewable electricity to, to the one you buy electricity from.
  • There a number of different types or rates: Fixed rate, Flexible rate and a multi-rate and variable rates
  • The price you are paid must not be below zero

Get  Free Advice Today

Contact us today and we can help you understand the Smart Export Guarantee (SEG)

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