Posted by: Vincent Wilkins: 27/02/2013
Get paid to heat your home
There are some great incentives available to heat your business with renewable heating. Yes the Greenest Government ever actually wants to pay you to start using renewable Heating technologies to heat your home from summer 2013. If you are a Business you don’t have to wait as the RHI is already available for non domestic properties. You can impress the public with your green credentials, reduce your business heating bill and generate an income.
RHI what is it?
Under the government-funded Renewable Heat Incentive (RHI), renewable heating technologies including Biomass boilers, Solar Thermal and heat pumps will earn payments for every unit of heat generated. It is anticipated the second phase of the RHI for domestic systems will be launched in the summer of 2013. Tariff payments are paid for 20 years from the registration date and are tax free and index linked. Of course this money has to come from somewhere, yes you the tax payer. The money for the tariff payments comes from the treasury and is paid out by the scheme administrator OFGEM, who are responsible for overseeing the whole scheme and maintaining the register of eligible systems. The RHI is a key foundation to our energy future where both carbon reduction and energy security are assured and one in which we are less reliant and dependent on fossil fuels. The RHI is the first financial support scheme for renewable heat of its kind in the world.
Why should I bother?
Quite simply there has never been an opportunity like this where the government will pay you for the renewable heat you generate with Biomass, solar heating and heat pumps. In fact, this is the first scheme like it in the world. Why would you not want to be paid to heat your home or business? With heating bills accounting for a large proportion of home energy costs the RHI is not to be ignored. By generating your own renewable heat, you won’t be relying on either gas, coal or oil – all of which have seen huge price rises in recent years. It’s pretty clear that they are only heading in one direction. With the RHI and either Biomass, solar thermal or heat pumps you will basically be heating your home or business free for the next 20 years. Also, renewable heating is environmentally friendly so you’ll be doing your bit to reduce your carbon footprint.
What's the catch?
This is one of these rare occasions where something that sounds too good to be true actually isn’t. Of course you have the initial outlay for the installation cost but there is a relatively short payback period. You may be able to get help through the Green deal or it may even be worth considering a remortgage as the RHI gives you such a good return on your money.
RHPP - What's that?
RHPP stands for ‘renewable heat premium payment’, which is basically a huge pot of money that has been made available to encourage the uptake of renewable heating technologies. Quite probably as a result of the government dithering, stalling on the RHI and so the likes of us could actually stay in business and not totally lose hope. If you are off grid, you may be able to claim £950 towards the cost of Biomass. However everyone can apply for the £300 towards installing solar. But bear in mind this may be deducted from the RHI payments you will receive.
What's it worth
That is dependent on the technology you install, the size of the system and whether you are a business or domestic user. You can find details of the RHI business tariff on our RHI page and proposed Domestic tariff on our RHI page. There are two ways in which the amount you receive will be calculated. Payment for the exact amount of heat produced, this data is collected by a heat meter. Payment for the anticipated heat to be produced paid on an estimated. If you are a business we will calculate for you what you are likely to receive in RHI payment. However for domestic properties we are still waiting for confirmation of tariff rates but proposed rates are available. Please follow the links below for further info.
So what do I do now?
Arrange a site survey with us your local MCS accredited installer.
Links for further reading:
- Energy saving trust. Discover how renewable energy can work for you.
- Carbon trust
- RHI Scheme
- RHI non domestic tariff rates