The government’s latest ‘go-green’ incentive – which kicked in on April 9th this year could save homeowners hundreds of pounds on their heating bills – but only if they understand it!
That’s the message from Yorkshire Heat Pumps owner, Michael Wright, who says the new domestic Renewable Heat Incentive (RHI) Scheme offers massive potential to those who can cut through the jargon and confusion.
Said Michael: “There is a real opportunity to increase efficiency and save money on energy bills for those exploring the possibility of incorporating renewable energy heating into their home.”
For anyone wanting to navigate their way through the information minefield, here are Michael’s answers to a number of the most frequently asked questions.
What is a renewable energy heating system?
It’s a heating system which uses alternative sources of energy to fossil fuels.
What is the Renewable Heat Incentive Scheme?
RHI is a world first – a government scheme which incentivises customers to switch to a renewable energy heating system. It pays people for every kilowatt hour of renewable energy they produce. Domestic RHI payments are made quarterly over a seven year period.
A non-domestic scheme was launched in 2011, and has just been extended to the domestic market.
Why has it been introduced?
The government has a tough carbon reduction target to hit by 2020 when 12% of the UK’s heating must come from renewable sources. The only way they can expect to hit this is by encouraging people to move away from fossil fuels. And the most effective way to do is by offering a financial incentive.
Can anyone claim?
Domestic RHI is for new installations of eligible renewable heating systems, it is also available to people who have installed eligible systems since July 2009, if, and only if their installations were done by appropriately accredited installers, who must have Microgeneration Certification Scheme (MCS) accreditation. It will also need to have been registered on the government’s MCS Installation Database (MID) by 22 October 2013.
Which heating technologies are eligible to receive domestic RHI payments?
Ground source heat pumps, biomass boilers, air source heat pumps and solar thermal panels are eligible.
What do you get paid?
You are paid a tariff for every kilowatt hour (kWh) of renewable energy you generate, which varies depending on what technology you have. The price paid is expected to go down as uptake of renewables grows and the government closes in on its carbon reduction target, so getting in quickly will see you getting better returns.
Where do I start?
A Green Deal Assessment must be completed for your home before you can apply for RHI payments.
It’s crucial you find a suitably qualified and registered Green Deal Assessor to undertake this. There are sadly some rogue traders out there claiming to offer this service but without the proper accreditation.
You can find a registered Green Deal Assessor by searching on the Department for Energy and Climate Change (DECC) Green Deal Assessor database: http://gdorb.decc.gov.uk/consumersearch
How do I know which is the right technology for me?
Ask the experts: In addition to the mandatory Green Deal Assessment, we recommend that our customers commission an independent Heat Loss Survey. This is undertaken by a suitably qualified person such as a Chartered Engineer (CEng), and looks at everything from a room by room heat loss calculation to the insulation values of your home and the local climate to help arrive at a system specification which is just right for your property and your circumstances. The findings are transferable to any provider and are extremely detailed.
Keep an open mind: When embarking on your renewables journey don’t rule out any technology too soon. Take the long view – don’t just look at the seven year domestic RHI payback and the highest tariff you might receive. Think about the right system for you, your home and your lifestyle.
For example:
• If you have a poorly insulated home in need of some modernisation, a low temperature system, such as a Ground Source Heat Pump, won’t be suitable. It’s the most efficient when installed in well insulated properties and works at its best with underfloor heating, and has a high tariff, but you’d be best considering a high temperature option such as a biomass boiler, and bear in mind, you might need to increase the size of some of your radiators to maintain a comfortable temperature
• If you are away from home a lot, a manual pellet feed biomass boiler might not be the most practical solution for you – a vacuum feed system would be more practical, assuming you have the storage space for a sizeable pellet hopper. What’s more you can make significant savings on bulk delivery of wood pellets.
It’s a competitive market: Be sure to get competitive quotes, but don’t buy on price alone. Carefully assess what each provider is proposing, and the relative benefits or disadvantages of each solution. If they can’t explain their recommendation to your satisfaction, keep asking questions. A knowledgeable provider will be able to answer any questions you may have regarding everything from environmental impact and disruption, to equipment specification and set up, to operation and maintenance, helping you to decide what is going to be best for you and your home.