Since the government is now focusing on reducing emissions and pollution of the country they have created a series of incentives which benefit owners of renewable energy installations, including solar panels. Two of these incentives which apply directly to solar are listed below;
- Renewable Heat Incentive
The Feed-In-Tariff was introduced in 2010 and benefits those who install Solar PV in numerous ways;
- Your energy supplier will pay you for every unit of electricity that you generate, whether you are using it in your building or not. Once you have entered into the scheme your payments will increase annually in line with inflation and are guaranteed for 20 years
- You will get a further 4.77p/kWh from your energy supplier for each unit you export back to the electricity grid, so you can sell any electricity you generate but don’t use yourself. This rate is the same for all technologies
- You will be making savings on your electricity bills because generating electricity to power your appliances means you don’t have to buy as much electricity from your energy supplier. The amount you save will vary depending how much of the electricity you use on site
Renewable Heat Incentive
The Renewable Heat Incentive (RHI) is a government incentive program which entitles users of renewable technology, which is used to heat their house, to a claim payments back over time.
Therefore when using solar thermal to heat water (unluckily not counting swimming pools) you can receive money back over time. The rate is 19p/KWH produced. The actual figure of energy produced which is used is based on an estimate and these payments are made over a period of seven years and the rates the same for that entire period.
This could mean that should you use a 6 square metre installation producing 2811 kWH per year you would receive £3778 as a result of RHI.