Grants and Funding
There are currently a number of tariff and voucher schemes available for different renewable technologies. The Feed in Tariffs (FITs) for renewable electricity generation; The Renewable Heat Inventive (RHI) for commercial renewable heating and hot water generation; and the Renewable Heating Premium Payments for domestic renewable heating and hot water generation.
The SASIE team can offer advice and support regarding all grant and tariff applications relating to the technologies we install.
The Feed-in Tariffs (FITs) scheme was introduced to encourage the installation and deployment of small-scale sustainable energy generation. The scheme guarantees a payment from a designated FITs Supplier (typically an electricity company) for the electricity generated by individuals and businesses using small-scale, sustainable energy generation technology. In addition, unused surplus electricity can be sold to the company for a guaranteed fee.
SASIE Ltd offers two technologies eligible for Feed-in Tariffs: Wind and Solar Photovoltaic (PV).
There are three financial benefits from the FIT scheme:
- The Generation Tariff – You will be paid this for every kilowatt hour (kWh) you generate, whether you use it on your properties or export it to the grid! You will receive the tariff rate at time of connection (index linked) for 20 years for Wind turbines and 25 years for PV. The current generation rates are shown below.
- Export Payments – Your electricity company will also pay you for the electricity that you export to them. For systems below 30kW a deemed export amount is assumed which is typically 50% of the total generated. The typical payment is 3p per kWh.
- Energy Bill Savings – On top of this, any appliances that use electricity in your property while the PV or wind system is generating will use this free energy before pulling more from the grid and thus reducing your bills. This saving can be maximised through simple actions. For example, if you use a PV generation system, you can use your washing machine during the day instead of at night to take advantage of the free energy produced.
Current Rates and Requirements:
From the 1st April 2012 tariff rates for solar PV have changed to 21p for systems under or equal to 4kW. 16.8p for systems between, 4 and 10 kW and 15.2p for systems between 10 and 50kW. With the reduction of costs in solar PV systems since the FITs came into play in 2010 these rates still give around an 8% return on investment at current prices.
Also introduced on 1st April was the requirement for all persons or entities applying to claim FITs to have an Energy Performance Certificate (EPC) for their properties, achieving at minimum a D rating. We are happy to give advice about acquiring an EPC.
The current rates for Wind Turbines are 35.8p for turbines below 1.5kW and 28p for those between 1.5 and 15kW.
The Future of the Tariffs:
The tariff rates will be decreasing every 6 months for solar PV and every year for wind or earlier if maximum national targets for that period are reached before hand. The rate for Wind will reduce at least 5% each year.
The rate for PV will typically be reduced by around 10% at each stage. However, the next rate change due in July 2012 is likely for example to see the under 4kW rate fall to 16.5p or lower.
These reductions will only apply to new installation installed after the reduction date. Existing installations completed prior to this date will retain their tariff as at the time of installation.
For more information on FITs, visit the Department of Energy and Climate Change.
The Renewable Heat Incentive is a funding stream for renewable heat generation that works similarly to the FIT, paying per kWh generated. Currently the RHI is only applicable to commercial and public installation but an interim scheme, the Renewable Heat Premium Payments, is available for domestic installations until Phase 2 of the RHI comes into practice. For more information on domestic properties, please see below.
The current rates available for commercial installations are:
· 8.3p per kWh generated for Biomass Systems below 200kW
· 4.7p per kWh generated for Ground Source Heat Pump Systems below 100kW
· 8.9p per kWh generated for Solar Thermal Systems below 200kW
To keep within budget, the government is currently consulting on a funding limit for this financial year for the RHI. Once that limit is reached the scheme will be suspended to new applications until the next financial year.
For more information on the RHI, visit the Department of Energy and Climate Change.
As an interim measure before the RHI is available for domestic installations, the RHPP has gone into a second phase. In this phase home owners can apply for vouchers against the cost of installations for various technologies. To receive the vouchers your property must reach a minimum energy efficiency standard, you will need to fill out a questionnaire, and install an energy use and performance meter. Excluding solar thermal systems vouchers are only available for people with properties which don’t have mains gas. If you receive a RHPP voucher you will still be eligible to apply for the RHI when that becomes available for domestic installations. The voucher values are as follows:
- Solar Thermal: £300
- Biomass: £950
- Air Source Heat Pumps: £850
- Ground Source Heat Pumps: £1250
For more information on the RHPP please see the factsheet at the Department of Energy and Climate Change website.
The information on this page was updated on 18/05/2012. SASIE Ltd seeks to provide accurate and up to date information where possible but it is the responsibility of the client to confirm their eligibility for funding and grants.
If you wish to know more or make an inquiry regarding an installation, please contact SASIE Ltd on 0115 916 1046, or send an email to firstname.lastname@example.org.