Warm Your Heart

Renewable energy- what is it all about?

Renewable energy – wind, solar, geothermal, hydroelectric, and biomass – is a term we all hear too often without ever understanding the true benefits and applications. Many individuals, families and businesses have long relied on traditional energy sources, such as gas and coal, because it’s easily accessible and requires nothing more than a phone call.

However, renewable energy in all its forms has now begun to grab the attention of a wide range of the British population, as the substantial benefits for financial savings, the environment, our health, and the wider economy are realised.

The UK’s Domestic Renewable Heat Incentive (RHI) is now available and will be administered by the energy regulator Ofgem.
The RHI will support and reward households who move away from fossil fuels for heating their homes.

Helpful Video about Heating Systems for the RHI scheme taken from www.ofgem.gov.uk

What is the Renewable Heat Incentive?

The Renewable Heat Incentive is a fixed payment for the renewable heat you generate yourself.

The Renewable Heat Incentive is similar to the Feed-in Tariffs, a comparable scheme for electricity which went live in April 2010.

The Feed-In Tariffs have done more than anything else to accelerate the installation of renewable energy capacity in Europe.

Helpful Video about Heating Systems for the RHI scheme taken from www.ofgem.gov.uk

Installing an eligible system

In order to qualify for the RHI payments, the property and renewables system has to meet certain criteria:

The product itself and the installer, whether it’s a heat pump or a solar system*, must be MCS approved

The installation of the system must adhere to strict guidelines

*Solar Thermal is part of the RHI and Solar PV falls under the Feed in Tariff scheme. Both must be installed by an MCS approved installer. For all these jobs Radiant Heating Solutions work with a partner.

HOW MUCH WILL I GET PAID AND FOR HOW LONG?

There are two types of RHI, A Domestic and Non-Domestic scheme. Each scheme has its own tariff and length of payment cycle.

Domestic

The tariff is paid quarterly for 7 years (28 payments) and is linked to the retail price index (RPI). The rates are based on technology efficiencies; technology lifetimes; and the cost of financing.

Some rates may be affected by what is known as digression, which is the process of lowering tariff rates depending on the uptake to the scheme versus the approved budgets. A full explanation is found on the government’s Ofgem website

In most cases the RHI will have covered the cost of installing the system by the end of the scheme; a member of the Radiant team will be able to advise you on how much your system can earn you.

Eligible Technologies and Tariff levels for*

Technology Tariff (p/kWh of renewable heat)
Ground/Water Source Heat Pumps 19.10p

Ground/Water Source Heat Pumps 8.95p (Non-Domestic)

Air Source Heat Pumps 7.42p

Air Source Heat Pumps 2.57p (Non-Domestic)

*Tariffs accurate Feb 2016 please be advised they are subject to change

Non-Domestic

with this scheme again the tariff is paid quarterly but for a period of 20 years. Non-Domestic is typically where more than one building is being heated. This could be a small development sharing a centrally located heat pump or shared ground collector. Radiant Heating solutions can assist you with both get in touch if you need help or information.

WHAT ELSE DO I NEED TO DO?

All applicants will need to have a Green Deal assessment of their home.

If loft and cavity wall insulation are recommended by the assessment, you will need to install these and then obtain an updated energy performance certificate (EPC).

Radiant will be able to assist to ensure you have everything in place prior to your application.

Helpful Video about payments for the RHI scheme taken from www.ofgem.gov.uk

Here are some useful links

An introduction to the Domestic Renewable Heat Incentive If you’re considering or intending to apply get info here

Find out how much money you could get using this calculator on gov.uk

Start your application – Apply through the Ofgem website