With the Renewable Heat Incentive (RHI) you can benefit from a much quicker payback on your renewables investment.
Renewables help you to save money on those expensive energy bills, but with the RHI you can earn a fortune too.
Tariff rates are paid quarterly for seven years and the RHI fully replaces the previous RHPP grants.
Of course, what you really want to know is how much you’ll earn. But this varies from house to house depending on the technology and its efficiency.
The technologies and tariff rates available are listed in the table below:
So let’s take a look at the different options available and how much you can expect to earn with the renewables.
First up is solar thermal panels, which are installed on the roof and work by taking in the sun’s natural heat. The Solar Trade Association (STA) estimates that with the RHI for solar panels you stand to earn between £1,150 and £3,250 over the seven years of payments. This is a massive difference, but obviously ranges from a system suitable for a two bedroom house, to a home with four bedrooms.
Air Source Heat Pump
Early estimates from the Government expected payments of around £500 a year for the typical system but in truth, you could stand to earn even more than that. The Energy Saving Trust believes you can earn as much as £1,350 a year with an air source heat pump.
Ground Source Heat Pump
Ground source heat pumps aren’t as popular as air source systems because they need to be installed in the ground, but in fact you stand to earn more by investing in one of these systems. With a ground source heat pump you can earn £1,400 annually and as much as £3,000 yearly for the most suitable households.
Biomass boilers burn renewable products such as wood pellets and chips to heat your home. With the RHI payments you can make up to £1,300 annually on top of the savings you’ll make by ending your reliance on the gas grid.
How much does it cost to install a renewable heating system?
The different technologies all cost a different amount, but as you’ll see, the more expensive systems will subsequently help you earn more. Of course, costs differ from company to company but below are the rough prices you could expect:
- Solar water heating panels: Around £4,800
- Biomass boilers: Around £11,500
- Ground source heat pumps: Between £9,000 and £17,000
- Air source heat pump: Between £6,000 and £10,000.
What can I do now?
If you want to start benefitting from renewables and make the most of excellent RHI payments, then you should follow the steps outlined below:
- First of all you want to ensure your home is as efficient as possible. What would be the point in investing in renewable heat, if the warmth you produce is escaping your home due to poor insulation?
- Ensure you choose the renewable technology that is best for your home. Take each under consideration and think about how much heat you need and use.
- Always compare quotes between companies rather than taking the first offer.
- Use a reputable company accredited by the Microgeneration Certification Scheme.