and heat pumps
both generate an income from the energy that they produce. Read about these incentives in more detail below.
Reduce your energy bills
Just as valuable as any payment to you, is not needing to pay for energy in the first place! Through the utilisation of energy efficiency, generating your own electricity and improving the efficiencies of your heating system you will stand to enjoy a substantial benefit from savings even without the feed in tariffs and renewable heat incentive.
Solar panels - Feed in Tariffs
The Feed in Tariffs (FITs) provide the installation owner with a payment for the clean energy that they generate. There are two parts to this tariff, the generation tariff and the export tariff.
– the largest FITs payment comes from the generation tariff. The generation tariffs are tiered based on the size (in kW) of your installation with systems of up to 4kW total installed capacity receiving the highest payment. For every kWh that you generate, you will be paid a generation tariff.
– A smaller tariff paid for every kWh that you export back to the National Grid. In the majority of cases, the number of kWh that you export will be deemed to be 50% of your total generation as most property electricity meters cannot ‘count’ reverse flows.
In order to access the Feed in Tariffs you will need to meet several criteria as follows:
- You must use an MCS registered installer. You must use MCS approved materials (e.g. panels) for the installation.
- You will need to register for the payments with an energy supplier. However, you do not have to receive you FITs from your current energy supplier and as such I recommend registering with a more environmentally conscious supplier such as Good Energy or Ecotricity. They are also very helpful energy suppliers and are worth switching to if you haven’t already.
- You will need an Energy Performance Certificate at grade D or above for your property in order to receive the highest tariff rates.
Find out more about solar panels.
Heat pumps - Renewable Heat Incentive
The Renewable Heat Incentive (RHI) provides the installation owner with a payment for the heat that they produce. This is deemed based upon the annual heating requirements calculated by an Energy Performance Certificate (EPC) for your property. There are two incentives available; one for domestic customers and one for commercial customers.
In order to access the RHI you will need to meet several criteria as follows:
- You must use a Microgeneration Certification Scheme (MCS) registered installer.
- You must use MCS approved materials (e.g. heat pumps) for the installation.
- You will need to register for the payments with an energy supplier, however, you do not have to receive your RHI from your current energy supplier. As such I recommend registering with a more environmentally conscious supplier such as Good Energy or Ecotricity. They are also very helpful energy suppliers and are worth switching to if you haven’t already.
- You will need an Energy Performance Certificate and a Green Deal Assessment (GDA). You will have to install loft and cavity wall insulation if recommended by the GDA before you can obtain the RHI, unless you can apply for insulation exemption.
- For the domestic scheme you must own or occupy the building.
Find out more about heat pumps.
If this sounds complicated, don’t worry, we can explain all of this with you in more detail.
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