As well as the incentives of reducing running costs and cutting CO2 emissions for your heating and hot water production, renewable heating systems can also provide the additional benefit of generating a tax free income via the government’s Renewable Heat Incentive (RHI) scheme.
Domestic RHI - The ‘Renewable Heat Incentive’ is designed to encourage householders to shift towards more sustainable forms of heating via ongoing payments based on the amount of ‘renewable heat’ produced. The proposed tariff levels (from 1-4-18) are as follows -
Ground source heat pumps – 20.46p/kWh.
Air source heat pumps - 10.49p/kWh.
Solar Thermal – 20.66p/kWh.
For more information on how the RHI works see here.
Non-Domestic RHI - As its name suggests this scheme is similar to the domestic RHI but is aimed at non-domestic properties and therefore different tariff levels and eligibility criteria apply. Current tariff levels (as of 1/4/16) are as follows -
Ground source heat pumps – Tier 1 (1st 1314 hours) = 9.36p/kWh, Tier 2 (rest of heating season) = 2.79p/kWh
Air source heat pumps - 2.69p/kWh
Solar Thermal - 10.75p/kWh
Tariffs are also available for Biogas, Biomass, Deep Geothermal and CHP (NOT BY JKN)
Green Deal -The Green Deal has largely proved to be a complete waste of time and money as it wasn’t really all that attractive to anyone but landlords who could effectively have energy efficiency improvements paid for by tenants. It is no longer being pushed as the main finance route and many commercial loan alternatives are available. From April 16 you will no longer need a Green Deal Assessment to be eligible for the domestic RHI (EPC still required).
Please contact JKN to see if any of the above is applicable to you.