Funding and incentives available to home owners

The UK and EU government is trying to encourage people to go green and are trying to find alternative energy solutions to replace our finite supplies of fossil fuels. However, the initial expense of installing a renewable system at your home to replace your current heating and electricity systems often puts people off. This is where the following government funding and incentives come in – read on to find out which incentive is best for you and your property.

Feed-in Tariffs scheme (FITs)

This is a financial incentive for people to adopt eligible electricity generating renewable technologies including, solar panels, wind turbines, Micro CHP (micro combination heat and power) and micro-hydro systems.

Simply, you will be paid for the electricity you generate as well as any surplus energy you export into the National electricity grid.

To qualify for the FITs payments your system must have been installed by a MCS certified installer. Your installer will provide you with a MCS certificate which you need to present with an EPC certificate for your property to apply for the FIT scheme. The EPC proves that the building the installation is attached to, or wired to provide the electricity to, is a level D or above.

Renewable Heat Incentive (RHI) for domestic homes

This is a finance support scheme which provides long-term financial incentives for people who install renewable heating systems which generate your home with heat such as heat pumps and solar thermal.  This is the equivalent for heating as the FITs are for people who generate their own electricity. You will be paid for the heating unit outputs your system generates.

To qualify for the RHI you will need your system to be installed by a MCS certified installer and a Green Deal assessment must be carried out on your property to qualify for the funding.

The RHI is being launched in spring 2014, in the meantime, there is a short-term incentive available called the Renewable Heat Premium Payment (RHPP).

The Renewable Heat Premium Payment (RHPP)

This is funding to help provide upfront payments to help support the initial costs of the equipment and installation of renewable technologies that generate heat such as biomass boilers, solar thermal and heat pumps. This is mainly targeted at households that run off the gas grid.

ECO – Energy Companies Obligation

This is funding of up to £10,000 for hard-to-treat cavity wall properties (Pre 1950) or solid wall properties (Pre-1930) and for households with low income. This funding enables people who are eligible to have external solid wall insulation, internal solid wall insulation, renewable heating systems, boiler and loft insulation 100% funded.

Article written by Optiheat Renewables, Devon-based renewable heating experts.