Until 2010, the cost of installing many types of renewable energy technologies was assisted by government grants. However, this system of financial support has now been replaced by payments to householders for the electricity they produce over the lifetime of the system, leaving them to bear the full cost of the installation.
Feed-in tariffs
With the introduction of feed-in tariffs from April 2010, grant funding for installation of renewable electricity technologies (e.g. solar PV, wind turbines, etc.) ceased at the end of March 2010. See the article on Feed-in Tariffs (FITS) for details of the new payments scheme for renewable electricity generation. Note that to qualify for the feed-in tariff, the installation work must be done using an installer who is certified under the Microgeneration Certification Scheme.
Renewable Heat Incentive
Similarly, the Renewable Heat Incentive (RHI), announced in March 2011, replaces previous grants for installation of renewable heat technologies. The RHI is being introduced in two phases, with phase 1, starting in 2011, focused on industry and the commerical and public sectors. The incentive is a system of tariff payments set according to the renewable technologies installed and the amounts of heat they produce. Payments will be made over a 20-year period.
A similar system of incentive payments is planned for the domestic sector, starting in October 2012, to coincide with the launch of the Green Deal. A range of renewable heat technologies will be eligible for the RHI, including solar thermal, air- and ground-sourced heat pumps, biogas- and biomass-fuelled boilers, and renewable combined heat and power systems. Check with the DECC website for updates about eligibility and payment levels for the RHI.
Renewable Heat Premium
This is a one-off payment towards the cost of installing a renewable heating system, starting in July 2011. The government has earmarked £15m to allocate to some 25,000 households to boost take-up of these technologies. However, the Premium will be focused on properties that are off the gas grid and already have good levels of insulation. Click here for more information.