Renewable Heat Incentive

How it works
The Renewable Heat Incentive is a ground-breaking initiative from the Government intended to help reduce the UK’s carbon emissions and to protect the environment through offering a financial reason for people to generate their own heat energy from renewable sources.

Announced early in 2010 and due to become law in April 2011, the RHI legislation is similar to the electrical Feed In Tariff, in that it will pay you at set tariff rates for all the renewable heat energy you generate at home, at your workplace, or within your community, even if you use that energy yourself.

Whilst the RHI isn’t due to start until next April, as an approved installer under the Microgeneration Certification Scheme, we will ensure that any installation we undertake for you in the meantime will automatically pre-qualify for the scheme.

What it pays
There are various rates for all the different microgeneration technologies as detailed on the graph on this page, but all repayments to you will be made annually based on your system performance, they will be inflation-linked and tax free, and the tariffs will repay you for up to 23 years!

What’s more, according to Government figures, the tariff levels have been designed to earn an average 12% return p/a for heat pumps and 6% on solar heating systems, meaning that your initial capital costs invested should be earned back with plenty of interest over the respective tariff periods.

The scheme may of course alter slightly between now and April, but for a typical solar thermal heating system installed into a domestic home we would expect repayments of perhaps £250-350 p/a, plus gas or oil cost savings additionally.

For a typical heat pump installation we believe repayments of £1,000-1,500 p/a could be expected.

We provide all our customers with personal illustrations and quotations, please contact us now if you want more information on you can qualify under the Renewable Heat Incentive!

Renewable Heat Incentive – Proposed rates
SYSTEM	SCALE	TARIFF	DURATION
Ground Source Heat Pumps	Up to 45 kW	£0.07	23 years
	45 kW – 350 kW	£0.055	20 years
	350 kW & above	£0.015	20 years
Air Source Heat Pumps	Up to 45 kW	£0.075	18 years
	45 kW – 350 kW	£0.02	20 years
Solar Thermal	Up to 20 kW	£0.18	20 years
	20 kW – 100 kW	£0.17	20 years