Grants

Renewable Energy

The main incentives for generating renewable energy are in the form of money payback systems rather than up front grants. For renewable technologies that generate electricity, the Feed In Tariff (FITS) scheme provides a return on investment. For renewable technologies that generate heat energy, the Renewable Heat Incentive (RHI) is the mechanism for ensuring a return on investment. In advance of the domestic launch of the RHI, there are some small grants available in the form of the Renewable Heat Premium Payment (RHPP).

Feed In Tariffs (FITS)

The Feed-in Tariff scheme, announced by the Department for Energy and Climate Change (DECC) on 1st February 2010, is designed to stimulate the take-up of small-scale (up to 5MW) renewable technologies for producing electricity in the UK, by providing a fixed, index-linked repayment for a significant length of time to ensure a good return on investment.

The government have recently proposed bringing forward some changes in the tariffs for solar photovoltaics. The legality of the process followed is currently under legal dispute. Until this is resolved, there is some confusion over what the eventual tariff will be for installations since 12th December 2011.

The technologies included for FITS are :-

o Wind
o Solar Photovoltaics (PV)
o Hydro
o Anaerobic Digestion
o Domestic Combined Heat and Power (Pilot schemes only)


How does it work ?

Eligibility: you can claim the Feed in Tariff if you:

• already had a system installed between 15th July 2009 and 31st March 2010
• had an MCS-certified system installed on or after 1st April 2010
 

Benefits

• Electricity Bill Savings

As a result of generating your own electricity you will save money through using less electricity from your energy supplier.

• Generation Tariff

This is where you will be paid by your energy supplier for each kWh you generate. This rate is fixed by the government and is index-linked.

• Export Tariff

This is fixed rate, across all technologies, paid in addition to the generation tariff, for each kWh that is exported to the national grid. This is set at 3p/kWh.

Next Steps

1. Check that other energy efficiency measures have already been carried out e.g. cavity wall insulation, loft insulation, boiler replacement and double glazing.

2. Decide what renewable technology to install. Local MCS installers will provide a free survey and quote. Obtain at least 3 quotes, ideally from local installers with experience of multiple technologies. Resist cold callers and hard sales techniques.

3. Install the system using an MCS installer and product. Note that additional meters are needed to show how much is being generated and how much is being exported.

4. Inform your energy supplier. Note that different suppliers offer different benefits, and that you can choose which you do business with.

For further information, call the Dorset Energy Advice Centre:

0800 975 0166

 

The Renewable Heat Incentive (RHI)

The scheme is being introduced in two phases. For non-domestic installations, the incentive became available from 28th November 2011. The technologies included are shown below,

The second phase of the RHI scheme will see households moved to the same form of long-term tariff support offered to the non-domestic sector in the first phase. This transition will be timed to align with the Green Deal which is intended to be introduced in October 2012.

Key aspects of the RHI from 2011:

The RHI provides support for a range of technologies and fuel uses including:

o solid and gaseous biomass,
o solar thermal,
o ground and water source heat-pumps,
o on-site biogas,
o deep geothermal,
o energy from waste and
o injection of biomethane into the grid
 

• Support for households will be through the Renewable Heat Premium Payment in the first year of the scheme until the Green Deal is introduced in October when households will become eligible for RHI tariffs 

• RHI payments to be claimed by, and paid to, the owner of the heat installation or producers of biomethane for injection

• Payments will be made quarterly over a 20 year period

• For small and medium-sized installations (up to and including 45kWth), both installers and equipment to be certified under the Microgeneration Certification Scheme (MCS) or equivalent standard, helping to ensure quality assurance and consumer protection

• Tariff levels have been calculated to bridge the financial gap between the cost of conventional and renewable heat systems, with additional compensation for certain technologies for an element of the non-financial cost

• Heat output to be metered and the support calculated from the amount of heat used for eligible purposes, multiplied by the tariff level 
 

• Biomass installations of 1 MWth capacity and above will be required to report quarterly on the sustainability of their biomass feedstock for combustion and where they are used to produce biogas

• Eligible non-domestic installations completed after 15 July 2009, but before the start of the RHI, will be eligible for support as if they had been installed on the date of its introduction

• The Gas and Electricity Market Authority (Ofgem) will administer the RHI including: dealing with applications; accrediting installations; making incentive payments to recipients; and monitoring compliance with the rules and conditions of the scheme
 

• Air Source Heat Pumps will not be covered under the RHI 

For further information, call the Dorset Energy Advice Centre:

0800 975 0166
 

Renewable Heat Premium Payment (RHPP)

Grants available until the end of March 2012 :

£300 off solar thermal

For off-grid properties :

£950 off a biomass boiler

£850 off an air source heat pump

£1250 off a ground source heat pump 

For further information, call the Dorset Energy Advice Centre:

0800 975 0166