The last few years have seen a rise in renewable energy sources being utilised by businesses and homeowners as they look for a more self-sufficient and cost effective means to energy supply.
The Government has introduced 2 types of renewable technology incentives and here we look at the options and benefits with both schemes.
The Feed In Tariff
Earning money from solar-powered electricity is part of the Feed-in Tariff (FIT) which was introduced in Spring 2010 as a Government backed programme. Since its launch, the rise in demand for energy solutions such as solar panels has been considerable.
In 2014, it is estimated that there were around 650,000 solar power installations in the UK, which is almost double the previous year. A range of different properties are benefitting from the addition of solar panels, such as schools, train stations and farms and there’s no doubt those that have taken the renewable energy leap have a cleaner environmental conscience. But here’s where it gets interesting; you can earn money from your energy supplier if you decide to generate your own electricity, which is a genuine incentive to homeowners and business owners considering the renewable energy switch.
The FIT Benefits
Naturally, there is an initial cost outlay with the installation of such energy solutions but the long-term benefits far outweigh the initial spend. The benefits of solar electricity, also known as solar photovoltaics (PV), mean that your overall electricity bills will be significantly reduced, your carbon footprint is reduced and you can sell back unused solar generated electricity to the grid, which is all part of the Feed-in Tariff.
How To Apply
The scheme is only available through licensed electricity suppliers and you will need an EPC certificate (your energy performance certificate) upon application. For solar electricity installations, for example, the installer and the products themselves must be MCS certified which confirms they are eligible as part of the Microgeneration Certification Scheme.
If the Feed-in Tariff sounds like something you might be interested in, it’s also worth knowing about the Renewable Heat Incentive scheme.
The Renewable Heat Incentive
Much like the aforementioned FIT scheme, the Renewable Heat Incentive (RHI) is designed to provide financial support to renewable heat generators that are both domestic and non-domestic. The non-domestic scheme launched in November 2011 following the success of the FIT scheme and ensures monetary rewards for heat generated through a range of sources such as:
- Biomass boilers
- Water source heat pumps
- Ground source heat pumps
- Air source heat pumps
This incentive is ideal for large-scale businesses looking to recoup some of the significant heating costs associated with their dwellings. The scheme provides a continuous income stream for 20 years to any business that installs a renewable heating system, which is a highly attractive proposition.
During 2014 the domestic arm of the RHI was launched and has also proved popular with Ofgem figures claiming that 33,000 homes have been accredited for the domestic RHI since its launch in April 2014.
RHI Benefits
As with the FIT scheme, there are financial benefits to those who apply for the RHI scheme. As an example, for non-domestic installations, you could earn up to you could earn up to 8.84p per kWh with ground source heat and up to 5.18p per kWh for medium biomass solutions (correct as of July 2015).
It was also estimated by the Government that the RHI scheme could save up to 44m tonnes of carbon by 2020, which is quite an impressive target to strive towards.
How To Apply
To be eligible for the Renewable Heat Incentive your equipment must adhere to certain criteria, such as ensuring the applicant is the owner of the installation and the plant in question is eligible for the scheme i.e. it can provide heat for a particular use.
Combined Heat and Power Systems
Another energy solution that may be eligible for both the FIT and RHI schemes are Combined Heat and Power Systems (CHP), which can reduce fuel costs considerably compared to separate heat-only boilers, for example. A CHP plant installation could in fact be a great move now that support can come from the Feed-in Tariff and Renewable Heat Incentive schemes, meaning the high initial plant costs can be recouped.
Reducing Your Carbon Footprint…One Step At A Time
It’s only in recent years that there have been genuine incentives offered to those looking to reduce their carbon footprint and the adoption of renewable technologies such as Solar Photovoltaic Panels, Air Source Heat Pumps and Biomass Boilers are leading the way for more energy efficient alternatives to be readily accessible to all in the UK. Whether it’s the FIT or RHI scheme you’re considering, one step at a time, we can all work smarter to deliver a brighter, greener planet.
Robinsons is at the forefront of renewable technologies, providing energy efficient solutions to businesses across the UK. We can advise on the best energy solution for your business, maximising cost benefits and overseeing the whole process from start to finish. To find out more, please visit our Renewable Technologies Services page or call 01423 770094.