solar power

Renewable Heat Incentive

The "Renewable Heat Incentive" will be open to householders, non profit organisations and businesses. The following information is what has been released as a proposal by the Government and will hopefully be confirmed later this year

 

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Renewable Heat Incentive

Similar to the "Feed in Tariff" the government has committed itself to a similar scheme for solar thermal starting in April 2011. The "Renewable Heat Incentive" will be open to householders, non profit organisations and businesses. The following information is what has been released as a proposal by the Government and will hopefully be confirmed later this year.

house with solar heating

How will the payment be calculated

Renewable Heat Incentive payments are to be calculated on the annual amount of heat output, expressed in kilowatt hours (kWh). Using metering devices with solar thermal systems would be expensive and may encourage wastage. So instead of metering the amount of useful heat that a system will produce will be estimated at the time of installation and then paid annually for 20 years. The exact details of the method of calculation to be used to estimate the amount of heat a system will produce each year has not been confirmed yet.

Who can claim the Renewable Heat Incentive

Those projects completed after 15 July 2009 (when the Renewable Energy Strategy was published) will in principle be eligible. The scheme will only be available for installations carried out by MSC approved installers with approved products. All of Rayotec's solar products are approved by MSC and Rayotec are one of the first MCS approved companies.

The proposed rates of payment

Scale of System Rate (per kWh) Lifetime
Up to 20kW 18 Pence 20 Years
20kW – 100kW 17 Pence 20 Years

Q: If I receive the Renewable Heat Incentive payments will I have to repay any grant?

A: If you are a householder and have received a central Government grant, then you will not be expected to repay the grant.

Q: How much will a typical solar heating system expect to the earn from the renewable heat incentive payments?

A: A typical solar heating installation could expect to earn between £160 and £350 each year as well as saving an additional 60% of the annual hot water energy cost.

Summary of the solar heating renewable heat payment benefits

  • Payment for each kWh unit of heat generated
  • Payments to be guaranteed for 20 years
  • Amount of energy to be estimated not metered thus defending against waste and bad weather
  • You may be able to receive a grant as well as renewable heat incentive payments for a limited time

 

commercial solar grant