From 2014 those with renewable heat technologies will be paid for the energy they produce. But with fears of installation prices set to rise, now is the time to grab hold of the opportunity and secure your energy future.
The Government has finally announced the set rates for its Renewable Heat Incentive scheme, benefiting those with solar thermal panels, biomass boilers and heat pumps. From next spring you’ll have the chance to earn hundreds of pounds each year, which is combined with the energy bill savings you’ll make too.
The tariff levels for each renewable product will be set as follows:
- Solar thermal: 19.2p/kWh
- Air source heat pumps: 7.3p/kWh
- Ground source heat pumps: 18.8p/kWh
- Biomass boilers: 12.2p/kWh
The Renewable Heat Incentive has been put in place to promote the uptake of technologies with the aim of cutting bills and reducing carbon emissions. The non-domestic version of the scheme has been running since November 2011.
To top all of this off, the Renewable Heat Premium Payment is still in position, offering a grant for the installation of renewable heat technology. So by installing now you will receive a discounted price and earn an income from next year too.
With the RHPP scheme you’ll receive a grant worth:
- £2,300 for ground source heat pumps
- £2,000 for biomass boilers
- £1,300 for air source heat pumps
- £600 for solar thermal panels
Am I eligible for the RHI?
The RHI scheme is available to all homeowners, landlords and people who build their own home. So long as your installation has been in place since 15 July 2009 you’ll receive the tariff rate.
You must have one of the following technologies to receive the payments though: Air to water heat pumps; biomass only boilers and biomass pellet stoves with back boilers; ground and water source heat pumps; flat plate and evacuated tube solar thermal panels.
How often will I be paid?
Payments made through the RHI scheme are quarterly and will run for seven years from your application and acceptance. The Department of Energy and Climate Change (DECC) are also offering a further £230 annually when customers take out metering and monitoring packages for heat pumps. A rate of £200 will be available for biomass boilers too.
Energy and Climate Change’s Greg Barker said: “The Coalition is committed to helping hardworking families with the cost of living.
“Investing for the long term in new renewable heat technologies will mean cleaner energy and cheaper bills. So this package of measures is a big step forward in our drive to get innovative renewable heating kit in our homes.
“Householders can now invest in a range of exciting heating technologies knowing how much the tariff will be for different renewable heat technologies and benefit from the clean green heat produced. We are also sending a clear signal to industry that the Coalition is 110 per cent committed to boosting and sustaining growth in this sector.”
If you are looking to know that the cost of a air source heat pump or a ground source heat pump then our cost guide has all the answers. We can also help if you’re looking to get up to 4 quotes for a heat pump.