Renewable Heat Incentive - grab it while you can

Renewable Heat Incentive - grab it while you can

Richard Hiblen at renewable energy centre Green Square says we're mad if we pass up the chance to install renewable energy products in our homes using the Renewable Heat Incentive

RHI at the moment is very generous and people stand to make money

If you've been toying with renewable energy products for your home for whatever reason....not wanting to depend on Mr Putin for your gas, wanting to save money and do your bit to cut CO2 emissions... now is the time to act, says Richard Hiblen at Green Square. Sign up and you'll more than get your money back on the upfront costs and you'll reduce your energy bills under the Renewable Heat Incentive. You can email your questions to energy regulator Ofgem at DomesticRHI@ofgem.gov.uk

It’s not every day government makes an announcement that's great news for homeowners; however 9 April 2014 is a date to be remembered.
 
After a more than year-long wait, the Department of Energy and Climate Control (DECC) launched the domestic Renewable Heat Incentive (RHI), the first scheme of its kind in the world.
 
It outlines how much money can be saved and made from installing renewable energy products in the home so owners, landlords and self-builders can make accurate cost analyses when opting for more sustainable fuel sources and a lower CO2 way of living.
 
The Government's target is that by 2020 15 per cent of UK energy is generated from renewable sources. So the RHI  - which builds on the success of earlier green energy incentives so far adopted by more than 250,000 British homeowners - was always going to be positioned to offer a clear financial advantage. But to what extent hadn't been clear. 
 

The case for homeowners to invest in long-term sustainable energy solutions is very strong and my advice is to act now. 

Richard Hiblen urges people not to pass up the opportunity to in effect get the Government to fund their renewable energy products
Solar panels to generate electricity or heat water have come down in price and are suitable for many properties...just not those facing north
Musa biomass boiler, from £3.099. www.greensquare.co.uk
An air source heat pump is fitted onto an outside wall

Payments linked to RPI

The announcement confirms that the rates per kilowatt hour and the quarterly payments paid back to the homeowner over a seven year period will be Retail Prices Index (RPI) linked. This is definitely to be celebrated.
 
What the RHI also means is that initial financial outlay should no longer be a main factor when deciding to update current systems or switch from traditional fossil fuel boilers to renewable energy technology.  This is because the price difference between green and traditional technology will be returned over a seven-year period, while people will also save with lower fuel bills for the long term.
 
What’s more, the initiative offers consumers a greater access to renewable energy products not previously covered by the Green Deal and Feed-In Tariffs. This not only means the best technology can be chosen for each individual house, but it also extends the offer to properties that are both on and off-grid, offering more solutions to renewable needs.  
 
Products to consider and payment rates
 
Technologies eligible under the RHI includes: biomass boilersbiomass stoves with back boilersground or water source heat pumpsair to water heat pumps and solar thermal panels.  
 
These payment rates have been set as follows:
 
·         Biomass 12.2p per kwh
·         Solar Thermal 19.2p per kwh 
·         Air Source Heat Pump 7.3p per kwh
·         Ground and Water Source Heat Pumps 18.8p per kwh
 
To put this into context, a standard three-bedroom family home using approximately 25,000kwh per year through a biomass boiler would generate payments of £3,050 per year for seven years, meaning a total income of £21,350 through the RHI scheme. 
 
This calculation doesn’t include the savings made on annual fuel costs which could be more than 50 per cent especially with utility bills on the rise. 
 
Those who do stand to benefit the most from the RHI are the 16 per cent of homeowners who use an off-gas grid fuel and who have the capital to invest in renewable technology. These types of customers are set to double their money in the set seven year period.  
 
The other win is for those paying premium prices on off-grid fuel such as oil or LPG, as they can save up to 50 per cent and sometimes even more, especially if they are switching from using an electrical heating system to renewables.
 
For more info look at the Ofgem website, and speak to a renewable energy expert to explore what technologies are best for your home - find out exactly how much can be saved by taking up the RHI and cashing in on deals available.  
 
A small change now could mean more change in your pocket for the future.
 
And the reason I urge you to act now is that the Government will undoubtedly reduce the payment rates when numbers applying get too high.
 
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