Homeowners are set to receive extra funding to invest in renewable technology and heating grants will double in some cases.
With the Government keen to support low carbon ways of producing energy for the home, solar thermal panels, biomass boilers and heat pumps will all receive increased funding. This helps to provide a large chunk of the upfront costs and is a major incentive for those wanting to reduce energy bills.
The heating grants, formed under the Renewable Heat Premium Payment (RHPP) scheme, were only intended to run for a short while in preparation for the lucrative Renewable Heat Incentive. But with delays to the latter, the heating grants will now be available until spring 2014.
Payments made under the RHPP are increasing as follows:
- Solar thermal panels: £300 to £600
- Air source heat pumps: £850 to £1,300
- Ground source heat pumps: £1,250 to £2,300
- Biomass boilers: £950 to £2,000
The Renewable Heat Incentive will run in a similar fashion to the feed-in tariff associated with solar PV. For every unit of heat produced you’ll receive a set fee and this will go a long way to helping you earn a fantastic return on investment.
And the good news is, you can install your renewable technology taking advantage of these increased heating grants, and then receive the RHI payments too from spring 2014. Now is the optimal time to utilise the Government’s lucrative incentives.
Greg Barker, the energy and climate change minister, said: “I want to kick-start this exciting new market for consumer renewable heat technologies. This time limited, big increase in the value of vouchers for hardworking people who want to do something positive to install money saving green heating in their homes, should be a real boost for this growing green sector.”
So far 10,000 homeowners have taken grants for renewable products and this number is expected to rise rapidly.
Why install renewable heat technology?
There are a number of benefits for those who make the investment in renewables, now so more than ever. First off, the installation cost has now been seriously reduced and from 2014 you’ll start earning a fixed income too.
But until then you’ll be slashing your heating bills, especially if you’re not on the gas network. Renewables take energy from natural sources, rather than using National Grid heat. As such you won’t have to continue paying out as much on increasing grid gas and electricity prices.
Gaynor Hartnell, chief executive of trade body the Renewable Energy Association, said: “It’s welcome that these grants are being continued and the levels increased. They need to stay in place until the proper heat payment scheme for householders commences. This has been delayed on a number of occasions and we hope this will be the last time this stop-gap measure is needed.”