Government Tariffs and Incentives
The government has decided to stop funding the Green Deal Finance Company (GDFC). The GDFC was set up to lend money to Green Deal providers.
Yes they do and you may be able to receive payments for the heat you generate from a solar
water heating system through the government’s Renewable Heat Incentive.
The renewable Heat Incentive (RHI) is a tax-free and index-linked payment for a fixed 7 year (domestic) or 20 year period (non-domestic), to encourage the uptake of renewable energy as a replacement for fossil fuel heating.
By driving change in a heat sector currently dominated by fossil fuel technologies, the RHI can help the UK meet EU targets to reduce carbon emissions and improve energy security. In addition Renewable energy provided 6.5 million jobs in 2013.
The Renewable Heat Incentive is is administered by Ofgem.
Solar Energy Calculator:
The Solar Energy Calculator estimates the savings you could make by installing a solar PV system and the payment you could receive from the domestic Feed-in Tariff (FIT) scheme for eligible PV installations of up to 4kWp including new build.
Please click here to view the possible savings on your own home.
The ‘Energy Saving Trust’ estimates that the installation of solar PV panels on your roof will give you a tax-free return of around 12-15%, which sounds much more attractive than most savings accounts or retirement funds. This depends on the suitability of your home and roof, the number of panels you have fitted and how effectively they work. As an example, if you have a 4kw system installed (16 panels), installed on a property then you could save up to £15.5k over 20 years in electricity bills.
The Government have introduced the Feed-In Tariff which allows owners to receive a fixed rate for electricity generated annually and for any unused electricity exported back to the grid. You can enjoy a steady income for over a 20 year period with Solar PV
They will reduce your electricity bills: sunlight is free, so once you’ve paid for the initial installation your electricity costs will be reduced as you will need to purchase less from the grid.
You will get paid for the electricity you generate: the government’s Feed-In Tariff pays for the
electricity generated, even if you use it all.
You automatically sell any spare electricity back to the grid: if your system is producing more electricity than you need, or when you can’t use it, you sell the surplus back to the grid.
You will reduce your home’s carbon footprint: solar electricity is a green, renewable energy and doesn’t release any harmful carbon dioxide or other pollutants. A typical home solar PV system could save over a tonne of carbon dioxide per year – that’s more than 30 tonnes over its lifetime.
The main objective of the scheme is to increase the up take of renewable heating systems to reduce energy bills, lover carbon emissions and reduce the dependency on fossil fuels.
At the moment, around 80% of domestic heating is provided by some 18-20 million gas boilers.
OFGEM list the 6 responsibilities of a home-owner as part of the Renewable Heat Incentive (RHI) scheme. Please note OFGEM can withhold payments if they believe someone isn’t complying with the scheme rules.
You will be paid for per kilowatt (kWH) of renewable energy used.
The non-domestic Renewable Heat Incentive (RHI) tariffs from July – 30th September 2017 are as follows:
– Solar thermal – 10.44p per kWh
– Air source heat pump – 2.61p per kWh
– Biomass – 2.71p per kWh
– Ground source heat pump – 9.09p per kWh
The Feed-in Tariff (FiT) for both domestic and non-domestic installations are:
– Solar Photovoltaic (PV) – under 10kW 4.07p per kWh
– Solar Photovoltaic (PV) – 10kW – 50kW 4.39p per kWh
– Stand-alone Solar Photovoltaic (PV) – 1.99p per kWh
Tariffs are tax free and index linked
The eligible heating system technologies are as follows:
– Biomass boilers and biomass pellet stoves
– Air source heat pumps
– Ground (and water) source heat pumps
– Solar thermal panels
Please visit the Ofgem website: www.ofgem.gov.uk to apply. You will need the MCS installation certificate number, Energy Performance Certificate number and Green Deal Report number.
Domestic premises are defined in the Regulations as ‘single, self contained premises used wholly or mainly as a private residential dwelling where the fabric of the building has not been significantly adapted for non-residential use.’
The eligibility of premises is taken into account by the way in which they are classified for ratings purposes. For example, the regulators will consider premises to be single domestic based on whether that premises is treated as a separate and self-contained premises for council tax banding purposes.
If you have a district heating system for multiple domestic premises, you would be able to apply under the non-domestic RHI as long as there are more than one premises which are served by the heating system.
If you property is rated commercial or industrial then you will qualify as non-domestic. For all other situations like community, farming, process heating etc. please call the office for the latest expert advice.
Once you have been accepted on the RHI scheme you are guaranteed financial support for 7 years if your installation is domestic and 20 years if your installation is for non-domestic usage e.g. commercial, district heating and industrial.
Although the domestic scheme only pays over 7 years it is not a worse deal as you will receive the equivalent of 20 years payments over the period