Grants and Funding RHI and FITS and RHPP.
The Renewable Heat Incentive. (RHI)
Coastal Solar and Gas are accredited to carry out Solar Thermal work through the MCS scheme (micrgeneration Certification Scheme).
The UK Government has now announced the introduction of the Renewable Heat Incentive (RHI) from April 2014.
The scheme is expected to be launched in June 2014. Further details along with a tariff of 19p per kWhour This could mean that a system comprising of 30 tubes on a true south facing roof could be eligable for up to £300.00 per year rebate for a period of 7 years.. In addition tyo this up to£600.00 as a one of grant would be payable for any one installing Solar thermal up to 31st March 2014. This would then only make you eligable for payments for an additional 5 years./p>
What is it?
The Renewable Heat Incentive (RHI) is designed to provide financial support that encourages individuals, communities and businesses to switch from using fossil fuel for heating, to renewables such as wood fuel.
How the scheme works
If you replace your existing fossil fuel heating system (e.g. gas, oil or coal) with a renewable technology (e.g. wood fuel) you could get paid a set amount each year as an incentive for you to reduce your CO2 emissions and help prevent climate change.
The Government are not proposing to measure the heat generated from installations. Instead, an estimated figure will be used to work out payments.
The estimated figure represents the amount of heat energy needed to warm the home and/or hot water and will vary by house age and size, as well as by technology.
It has been proposed that payments would be made annually to householders.
- Air, water and ground-source heat pumps
- Solar thermal
- Biomass boilers
- Renewable combined heat and power
- Use of biogas and bioliquids
- Injection of biomethane into the natural gas grid.
More details of the Tariifs will apprear as they are announced.
Feed in tarriffs (FITS)
Feed-in Tariffs (FITs) became available in Great Britain on 1st April 2010. And isn’t available in Northern Ireland - although this is under review.
Under this scheme energy suppliers have to (compulsory for big six suppliers) make regular payments to householders and communities who generate their own electricity from renewable or low carbon sources such Solar Electricity.
About the Scheme
The scheme guarantees a minimum payment for all electricity generated by the system, as well as a separate payment for the electricity exported to grid. These payments are in addition to the bill savings made by using the electricity generated on-site.
Once you have a microgeneration technology installed you should experience a monthly reduction in your electricity bill and then receive an income from your Feed-in tariff provider. However, if you have taken out a loan to pay for the installation you will have to make monthly repayments to your loan company.
Feed-in tariffs are designed so that the average monthly income from your installation will be significantly greater than your monthly loan repayment (with a 25 year loan).
Use the Energy savings trust cashback calculator to see how purchase price and loan can impact on payback times.
The scheme covers the following electricity-generating technologies, up to an installation size of 5 Mega Watts:
- Solar electricity (PV) (roof mounted or stand alone)
- Wind turbine (building mounted or free standing)
- Anaerobic digestion
- Micro combined heat and power (micro CHP) (limited to a pilot at this stage)
The tariffs available and the process for receiving them vary, depending on when the technology was installed, and whether the system and the installer were certificated under the MCS* scheme. See below for further details
You will qualify for the full FIT payments if:
- The technology was installed between 15th July 2009 and 31st March 2010 and you transfered to FITs before 1st April; OR
- It is installed after 1st April 2010 using an MCS* certificated product and installer;
* The Microgeneration Certification Scheme (MCS) is an independent scheme that certificates microgeneration products under 50kW and installers in accordance with consistent standards. Any commercial or larger scale systems, over 50kW, and all anaerobic digestion installations must apply directly through the Renewables Obligation Order feed-in tariff process for larger installations (ROO-FIT) process as they are not covered by the MCS. Information on the ROO-FIT process is available on Ofgem’s website.
How the scheme works
If you are eligible to receive the FIT then you will benefit in 3 ways:
1. Generation tariff – a set rate paid by the energy supplier for each unit (or kWh) of electricity you generate. This rate will change each year for new entrants to the scheme (except for the first 2 years), but once you join you will continue on the same tariff for 20 years, or 25 years in the case of solar electricity (PV). Currently rated @0.41p / KWh
2. Export tariff - you will receive a further 3p/kWh from your energy supplier for each unit you export back to the electricity grid, that is when it isn’t used on site. The export rate is the same for all technologies.
3. Energy bill savings – you will be making savings on your electricity bills , because generating electricity to power your appliances means you don’t have to buy as much electricity from your energy supplier. The amount you save will vary depending how much of the electricity you use on site.
Domestic FIT installations are likely to have their export deemed (estimated) at 50% in most cases until smart meters are rolled out.
As an example, a typical domestic solar electricity system, with an installation size of 2.2 kWp could earn around:
- £770 per year from the Generation Tariff
- £30 per year from the Export Tariff
- £120 per year reduction in current electricity bills.
This gives a total saving of around £920 per year.
This assumes 50% of the electricity generated is exported. The figure will vary depending on how much is exported.
Calculation taken from energy savings trust web site.