Renewable Heat Incentive
In June 2011, the government officially launched the Renewable Heat Incentive payment scheme to revolutionise the way heat is being generated and used. It is said that people produce more carbon emissions to produce heat than electricity. The RHI is divided into two schemes to cover various important concerns from the domestic and non-domestic sectors of the UK.
The Renewable Heat Incentive is the first of its kind in the whole world. The government has implemented the RHI in order to reduce the carbon emissions of the country as a result of using fossil fuels. Domestic and non-domestic users of this green solar thermal technology will receive government payment incentives within 20 years of the scheme’s enactment.
The RHI tariff scheme has two phases, aiming at both non-domestic and domestic users of solar thermal energy.
Phase 1: Renewable Heat Incentive Tariffs
The first phase of the Renewable Heat Incentive provides long-term tariff support for entities in the non-domestic sector. These are the big heat users which contribute around 38% of UK’s carbon emissions include businesses, industrial, and the public sector.
Eligible technologies installed before 15th July 2009 will receive the tariff for 20 years for every kWh of renewable heat generated.
Phase 2: Renewable Heat Incentive Premium Payment
The second phase of the RHI will start by October 2012, along with the launch of the Green Deal. This scheme will concentrate on providing incentive payments of 8.5p per kWh for domestic users of solar thermal technologies.
The RHI Premium Payment scheme was allotted by the government with around £15 million as support to homeowners who have already installed the system. Owners who had their systems installed before 15th July 2009 are eligible for the “Premium Payment.”
The scheme will also support users of the following renewable heat source technologies:
- Solar thermal – £300/unit
- Air source heat pumps - £850/unit
- Biomass boilers - £950/unit
- Ground source heat pumps - £1,250/unit
Return on Investment
The government estimates that after 9 to 11 years, the costs owners paid for their solar heating systems will be paid in full by the Renewable Heat Incentive tariff scheme. The rest of the 10 to 11 years of participating in the scheme will present as a substantial source of profit for owners.
If you would like to know more information about how solar technology can help you pave the way for a cleaner environment and to experience the benefits of the Renewable Heat Incentive, contact us for a free energy survey of your home. We will get you connected with three of our top MSC solar panel installers and suppliers offering the best deals in the market.
Apply with us today!