How does the Renewable Heat Incentive work?

The UK Renewable Heat Incentive will be implemented in November 2011 to encourage the uptake of renewable generation of heat. The Renewable Heat Incentive provides people with an incentive to install solar thermal systems on their roofs such as the Surface Power SP501 which has the highest accreditation ever given to a solar thermal product . The Renewable Heat Incentive is available to commercial organisations throughout the UK later this month, with domestic customers becoming eligible to earn the tariff from Autumn next year as part of Green Deal. Until the domestic Renewable Heat Incentive is brought in, domestic customers will be able to claim a Renewable Heat Premium Payment grant which will go someway towards reducing the upfront cost of the system.

Under the Renewable Heat Incentive scheme, any one who installs a solar thermal system or other renewable heat technology can earn a set amount of money for every kWh of heat they generate dependent on the size of system they have installed. Once you have had your renewable heating system installed, you are guaranteed to receive the outlined rate which is inflation linked for 20 years. This can lead to a significant return on investment.

How much can I earn?

The amount of money your solar thermal install can earn from the Renewable Heat Incentive is dependent on the irradiance level in your area and the sunshine levels during the year. The further south in the UK you install a solar thermal system, the more earning potential your solar thermal system has. A system on a house in southern parts of England can earn in excess of £500 per annum.

On top of the earnings from the Feed in Tariff, most systems will provide households with a significant proportion of their hot water needs. As a result, you can also cut from 15 to 40% of your heating bill depending on your heating consumption patterns. As a result, a solar thermal install can provide households with a substantial financial benefit at a time when energy bills are rising every year.

Where can I find more information?

The full Renewable Heat Incentive documentation can be downloaded from the Department for Energy and Climate Change website.