Renewable Heat Incentive - Local Authority Funding

Details of the new Renewable Heat Incentive Scheme have been published.

The incentive, which is the first of its kind in the world, will encourage the installation of renewable heat equipment such as solar thermal technologies, biomass boilers and heat pumps. It will be funded from general Government funding, not through the previously proposed RHI levy.

Phase 1

From July 2011, the Renewable Heat Incentive (RHI) tariffs for non-domestic installations in the industrial, business and public sector were introduced. There will also be support of around £15 million for households through the RHI Premium Payment from July 2011. In return for the payments, participants will have to provide feedback on how the equipment performs in practice.

Phase 2

From October 2012, RHI tariffs for domestic properties will become available at the same time as the introduction of the Green Deal. Anyone in receipt of Renewable Heat Premium Payments will be eligible for the RHI, as will anybody who has installed an eligible technology since 15 July 2009.

The RHI Premium Payment

Up to 25,000 installations from July will be supported by a 'RHI Premium Payment' to help cover the purchase price. Eligibility criteria for the payments will include:

• A fair spread of technologies across all regions of Great Britain.
• A well insulated home based on its Energy Performance Certificate.
• A focus on properties off the gas grid, where heating fuels such as heating oil are more expensive and have a higher carbon content.
• Agreement from the householder to monitor the performance of installations.

A DECC press release on 10 March 2011 indicated likely levels of support for RHI premium payments:
 

Technology	Likely level of support (per unit)
Solar thermal	£300
Air source heat pumps	£850
Biomass boilers	£950
Ground source heat pumps	£1250

Full details of the RHI Premium Payment were published in May 2011. Due to State Aid rules there may be limits to how the Premium Payment is applied to social landlords.

RHI tariffs - domestic

RHI payments will start for homes alongside the Green Deal in 2012 to allow for a more whole-house approach to heat production and energy saving. The Department for Energy and Climate Change will consult on the RHI tariffs later in the year.
Those who have taken up the RHI Premium Payment will be eligible for RHI tariffs, as will anyone else who has had eligible equipment installed since July 2009 (exceptions apply if a grant has been received which contributed to the direct costs of an installation).
In order to receive support, local authorities and housing associations will need to be the owner of the installation and retain the rights and liabilities of the equipment.

RHI tariffs - non-domestic

Biomass, ground source, water source, solar thermal and biomethane projects in the non-domestic sector that have been installed since July 2009 in Great Britain will be eligible for RHI payments from July 2011. The payments will be made quarterly over a 20 year period to the owner of the heat installation.
A non-domestic installation is a renewable heat unit in a building which is not used as a domestic premises. This includes office buildings, schools and district heating schemes (e.g. one boiler serving multiple homes).
The support that an installation receives will be fixed and adjusted annually with inflation. For more details, see the RHI tariffs for non-domestic installations.

Applying for support

Applications for support will need to be made to Ofgem once the scheme is launched and open for business.

Further information

For further information, see the Department for Energy and Climate Change website

Urban Energy

Urban Energy has earned a reputation as the south’s leading renewable energy specialist. This has been achieved by ensuring that from the initial point of client contact we offer 1st class customer service and care.

We only install products that lead the way within the renewable energy industry and that are renowned for their high quality and ecologically sound production. This reflects our own high standards and quality assurance.

We understand that introducing a renewable energy system to either your home or business is an investment that lasts for many years. With our in-house electrical and plumbing division it is our promise to you the customer that your satisfaction and peace of mind throughout this period is our number one priority.

For further information about Urban Energy products and services:

Call: 0800 232 1624

Email: info@urbanenergy.org.uk

Website: http://www.urbanenergy.org.uk/

Considering Renewables?

Our guide to green, clean energy in the home. If you're considering installing renewable energy technologies at home, then there are several options available to you. However, not all will be right for your home. Read our guide to the different technologies available and find out about the government's Feed-in Tariff, also known as the 'Clean Energy Cashback Scheme'.

The UK is quite well suited to solar power. If you've done the basic things to stop wasting energy at home, such as installing loft and wall insulation and energy efficient lighting and appliances, then you might want to consider installing your own renewable energy technologies. Working out which technology is most suitable for your home is a good way to start.

Wind turbines

Wind turbines are the iconic renewable energy technology. At home, small turbines are only suitable in certain parts of the country, if they have clear sight-lines away from other buildings or trees and where there is a wind speed of no less than 5 m/s. Be aware that, in some areas, erecting a turbine will also need planning permission. You can see if your home is suitable for wind power at the Energy Saving Trust website.

Solar power

As contrary to popular belief solar photovoltaic (PV) cells don't need direct sunlight to work, so you can still generate electricity on a cloudy day.

Solar PV panels convert sunlight directly into electricity. In addition to Solar PV there are also solar water heating systems that use the sun's heat to warm up water, which can then be used directly. Both are best placed on south-facing roofs but other orientations can also work, though less efficiently.

Feed-in Tariffs (FiT's) will be introduced to the UK on 1 April 2010. The scheme requires energy suppliers to make regular payments to householders and communities who generate their own electricity from renewable or low carbon sources such as solar electricity (PV) panels or wind turbines.

The scheme guarantees a minimum payment for all electricity generated by the system, as well as a separate payment for the electricity exported to the grid. These payments are in addition to the bill savings made by using the electricity generated on-site.

From April this year, every unit of electricity generated at home could earn up to 41.3p for a PV system – which could mean around £800 per year for 25 years for a typical-sized solar electricity installation, up to just over £1,650 per year for 25 years for an optimal south facing 4 kWp system.

Other technologies, such as wind, hydroelectricity and micro combined heat and power, will also benefit from the scheme, though with smaller payments than solar PV.

Air and ground source heat pumps

A ground source heat pump uses pipes buried underground (usually in a back garden) to extract heat from the ground and warm water for radiators in a home. A typical system costs around £12,000, with running costs of around £650 per year where the heat pump provides all heating and hot water. They can save around 540kg of carbon dioxide (CO2) and £160 a year if they replace an oil-fired central heating system, or more if replacing coal or electric heating.

Air source heat pumps extract heat from external air in the same way that a fridge extracts heat from its inside and these systems can operate with outside temperatures as low as -15C. They are cheaper than ground source heat pumps to install, £5,000 to £9,000 but are not always as efficient with running costs for heating and hot water at around £790 per year. The Energy Saving Trust says that the system could save up to 5,000 kg of CO2 and £700 per year if it replaced an electric heating system.

Wood fuelled heating

A stove burning logs or pellets could heat up a single room or, for full home use, a wood fuelled boiler can replace your current boiler/heating system. Because the boiler uses wood, it will only release the CO2 that was absorbed as the tree was growing in the first place. If the wood has been sourced responsibly and new plants are grown to replace the ones chopped down to make the fuel, wood fuelled systems are essentially carbon neutral.

A standalone stove costs around £3,000, while a typical automatically-fed boiler would set you back around £9,000. But wood fuel systems can save up to 9,600 kg of CO2 per year if they replace a coal-fired system.

Hydroelectricity

Finally, there is small-scale hydroelectricity. These use running water to turn a turbine that generates electricity. The faster the water flows and the more water there is, the more electricity can be produced. Clearly only suitable for people with a stream nearby, the advantage of this technology is that it is also eligible for the government's feed-in tariffs.

URBAN ENERGY

Our mission: “To provide and install, sustainable, world class, clean energy products with the highest level of service and care."

Urban Energy is an innovative organisation specialising in the financing, design and installation of economic and environmentally sound solar powered energy systems for commercial property (private and public) and domestic dwellings. Our expertise in the field of Government sponsored funding programmes and solar power products will provide individuals and organisations with an excellent opportunity to overcome capital cost barriers, save money on energy bills, increase profit margins, increase the value of their property and reduce their carbon footprint.

Urban Energy employ the very best engineers in this field, all of which are fully qualified, MCS certified and Government approved to carry out this task, complying with strict guidelines and are members of the Solar Trade Association.

For further information about Urban Energy products and services:
Call: 0800 232 1624
Email: info@urbanenergy.org.uk
Website: http://www.urbanenergy.org.uk/