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Grants and Incentives for Renewable Energy

Renewable Heat Incentive & Feed-In-Tariffs

The Government has introduced cash incentives to encourage businesses and householders to invest in renewable energy technologies.

The main sources of funding for renewable technologies are; the Renewable Heat Incentive (RHI) and Feed-In Tariffs (FITs).

Renewable Heat Incentive (RHI)

The RHI applies to heat producing renewable technologies such as heat pumps, solar thermal and biomass. It is administered by the official regulator Ofgem.

Commercial RHI

This Scheme supports renewable heat installations in business, industry and the public sector. RHI payments are made over a period of 20 years. See Ofgem's easy guide to the non-domestic RHI here.

Tariff rates from 1/4/17 are as follows:

Technology Commercial RHI Tariff p/kWh from 1/1/16
Ground Source Heat Pump

8.95 for the first 1314 hours (tier 1)

2.67p for above 1314 hours (tier 2)

Air Source Heat Pumps     2.57p

Domestic RHI

On 9th April 2014 the Department of Energy and Climate Change (DECC) launched the Domestic Renewable Heat Incentive (RHI) Scheme.

This is the first scheme of its kind in the world and offers homeowners payments to offset the cost of installing renewable systems in their properties.

The Scheme is administered by Ofgem, you can see their factsheet on the domestic RHI here.

In essence, households will be paid the following tariff for every kWh of renewable heat generated by a supported technology, the tariff is paid quarterly over a 7 year period. Current tariffs with effect from 1/4/17 are as follows:

Technology Domestic RHI Tariff pence/kWh
Ground Source Heat Pump 19.64p
Air Source Heat Pump 7.63p

Feed-In Tariffs (FITs)

FITs provide ongoing payments to owners of renewable equipment which produce electricity, such as solar photovoltaic (PV) panels and wind turbines. For further details and current tariff tables please see http://www.ofgem.gov.uk/environmental-programmes/feed-tariff-fit-scheme/tariff-tables