Why create a renewable energy source?

The benefits of installing a renewable energy system are vast. Government incentives can make a system financially lucrative whilst you’re saving the environment.

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A helping hand from the Government

The Government supports renewable energy as it seeks to achieve the challenging EU target of sourcing 15% of our energy from renewable sources – an eight fold increase in a decade. Hitting these targets will greatly reduce the release of carbon into the atmosphere and the impact it has on our environment! This support is in the form of the Feed In Tariff (FiT) for photovoltaic systems and the Renewable Heat Incentive (RHI) for solar thermal, biomass and heat pumps. Both schemes can only be accessed through companies like ourselves who have been MCS accredited, ensuring that you will have the best possible equipment fitted by properly trained installers.

Feed in Tariffs

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The Feed in Tariff, perhaps better described as a generation tariff, pays 4.39p for every kWh a typical domestic system generates. Plus, you will be allowed to use the electricity you produce, saving money on your bill. What’s more, you’ll be paid to export your electricity – an additional 4.85p for half of what you generate. The scheme is not just a flash in the pan either, the payments are guaranteed by the Government for 20 years and an array on an un- shaded, south facing roof can generate a rate of return of over 10%. Even better news is that the returns are tax free and rise in line with RPI. More details can be found on the Energy Savings Trust and DECC websites.


Renewable energy can be very rewarding

The Renewable Heat Incentive scheme is run by DECC and administered by Ofgem. The scheme embraces solar thermal, biomass, air source and ground source heat pumps. You’ll be paid for every kilowatt hour of heat you produce which is a tangible bonus in addition to cheaper fuels and the emotional benefits of reducing your carbon footprint. If you swap to a biomass boiler and your house uses 40,000 kWh of energy in a year you will earn just over £2,000 a year – £14,000 over the seven year term of the scheme.

The Domestic RHI

This is applicable to any single property that is capable of getting a domestic Energy Performance Certificate. This EPC gives a calculated figure for the amount of heat required by the building in a year and is the figure you’ll be paid against at the appropriate tariff rate (biomass is 5.14p, solar thermal is 19.51p). The tariff is tax free and linked to RPI ensuring the incentive keeps pace with inflation. If you’re switching from an oil boiler to biomass, the payments over seven years can cover most of the cost of the installation and leave you with a fuel that is considered to be carbon neutral and should be cheaper than oil in the long run.

There is a limit of 45kW for any individual biomass boilers (though it’s possible to have two 35kW units cascading together as the building limit is 70kW). Combined with a programme of increased insulation and other energy efficiency measures, this means that even really large properties can take advantage of this incentive

The Non-Domestic RHI

This is for commercial, public or industrial premises or for organisations with district heating systems (a group of houses using one boiler for example). The heat outputs are metered and though the payments are lower than the Domestic phase (<200kW Tier 1 biomass is 3.62p, <200kW solar thermal is 10.28p), the scheme is over a 20 year period. For businesses with large heating requirements, the scheme can turn a liability into revenue stream and it’s proving very attractive.


Energy prices will rise again

One of the great certainties in life is that the cost of fossil fuel will continue to rise as it becomes more scarce. Each year energy prices rise by more than inflation. Take a look at your bills and you may be surprised by just how much you are currently spending.

So how much can you save?
With one of our solar systems you can save up to 70% of the amount you spend on hot water. (On average hot water accounts for 25% of your total energy bill.) With one of our photovoltaic systems could reduce your net energy bill to zero. An average semi-detatched house uses 6000 kilowatts a year and a 16 panel PV system can generate a combination of savings and income to pay for all of it. Of course, in each case, it depends on your energy use, but with each quote, we’ll show you annual output figures that will allow you to judge for yourself.

Payback time depends on how much hot water or electricity you use and the future price of energy. Using current rates, we estimate your outlay will be recovered in 10-15 years after which most of your hot water will truly be free and your feed in tarrif, pure profit.