Government Incentives
Renewable Heat Incentives (RHIs)
The Government is currently consulting on a Renewable Heat Incentive (RHI) bill. If your proposal and property are eligible, you may be able to claim RHI benefits. This means that financial support may be available to bridge the gap between the cost of your existing energy system and a new renewable heat system. In addition, you may be able to benefit from an investment rate of return of 12% across all technologies and 6% for solar thermal.
For more information, please refer to the Renewable Heat Incentive page on the Energy Saving Trust website (www.energysavingtrust.org.uk), or ask us.
| Technology | Scale | Tariffs (pence/kWh) | Tariff lifetime (years) |
| Small installations | |||
| Solid biomass | Up to 45kW | 9 | 15 |
| Biodiesel (restricted use) | Up to 45kW | 6.5 | 15 |
| Biogas on-site combustion | Up to 45kW | 5.5 | 10 |
| Ground source heat pumps | Up to 45kW | 7 | 23 |
| Air source heat pumps | Up to 45kW | 7.5 | 18 |
| Solar thermal | Up to 45kW | 18 | 20 |
| Medium installations | |||
| Solid biomass | 45kW-500kW | 6.5 | 15 |
| Biogas on-site combustion | 45kW-500kW | 5.5 | 10 |
| Ground source heat pumps | 45kW-500kW | 5.5 | 20 |
| Air source heat pumps | 45kW-500kW | 2 | 20 |
| Solar thermal | 45kW-500kW | 17 | 20 |
| Large Installations | |||
| Solid biomass | 500kW and above | 1.6-2.5 | 15 |
| Ground source heat pumps | 350kW and above | 1.5 | 20 |
| Biomethane injection | All scales | 4 | 15 |
Feed-in Tariffs (FITs)
Feed-in Tariffs (FITs) became available in Great Britain on 1st April 2010.
If you have installed, or are thinking about installing, a renewable technology which produces electricity, such as a solar electricity (PV) system, you may be able to get paid for the electricity it produces.
Under this scheme, energy suppliers make regular payments to householders and communities who generate their own electricity from renewable or low carbon sources.
For more information, please refer to the Feed-in Tariff page on the Energy Saving Trust website (www.energysavingtrust.org.uk), or ask us.
| Energy Source | Scale | Generation Tariff (p/kWh)[A] | Duration (years) |
| Anaerobic digestion | ≤500kW | 11.5 | 20 |
| Anaerobic digestion | >500kW | 9.0 | 20 |
| Hydro | ≤15kW | 19.9 | 20 |
| Hydro | >15-100kW | 17.8 | 20 |
| Hydro | >100kW – 2MW | 11.0 | 20 |
| Hydro | >2kW – 5MW | 4.5 | 20 |
| Micro-CHP[B] | <2kW | 10.0 | 10 |
| Solar PV | ≤4 kW new[C] | 36.1 | 25 |
| Solar PV | ≤4 kW retrofit[C] | 41.3 | 25 |
| Solar PV | >4-10kW | 36.1 | 25 |
| Solar PV | >10 – 100kW | 31.4 | 25 |
| Solar PV | >100kW – 5MW | 29.3 | 25 |
| Solar PV | Standalone[C] | 29.3 | 25 |
| Wind | ≤1.5kW | 34.5 | 20 |
| Wind | >1.5 – 15kW | 26.7 | 20 |
| Wind | >15 – 100kW | 24.1 | 20 |
| Wind | >100 – 500kW | 18.8 | 20 |
| Wind | >500kW – 1.5MW | 9.4 | 20 |
| Wind | >1.5MW – 5MW | 4.5 | 20 |
| Existing generators transferred from RO | 9.0 | to 202 | |
FIT Payment Rate Table with Year 1 & 2 Retail Price Index adjustments
Yearly Tariff Period |
Installations registered in FIT Year 1 (01 April 2010 – 31 March 2011) |
Installations registered in FIT Year 2 (01 April 2011 – 31 March 2012) |
|
Description |
Tariff received until 31 March 2011 | Tariff received between 01 April 2011 and 31 March 2012* | Tariff received until 31 March 2012* |
| Anaerobic digestion with total installed capacity of 500kW or less | 11.5 pence per kilowatt hour | 12.1 pence per kilowatt hour | 12.1 pence per kilowatt hour |
| Anaerobic digestion with total installed capacity of greater than 500kW | 9 pence per kilowatt hour | 9.4 pence per kilowatt hour | 9.4 pence per kilowatt hour |
| Hydro generating station with total installed capacity of 15kW or less | 19.9 pence per kilowatt hour | 20.9 pence per kilowatt hour | 20.9 pence per kilowatt hour |
| Hydro generating station with total installed capacity greater than 15kW but not exceeding 100kW | 17.8 pence per kilowatt hour | 18.7 pence per kilowatt hour | 18.7 pence per kilowatt hour |
| Hydro generating station with total installed capacity greater than 100kW but not exceeding 2MW | 11 pence per kilowatt hour | 11.5 pence per kilowatt hour | 11.5 pence per kilowatt hour |
| Hydro generating station with total installed capacity greater than 2MW | 4.5 pence per kilowatt hour | 4.7 pence per kilowatt hour | 4.7 pence per kilowatt hour |
| Combined Heat and Power with total installed electrical capacity of 2kW or less (Tariff available only for 30,000 units) | 10 pence per kilowatt hour | 10.5 pence per kilowatt hour | 10.5 pence per kilowatt hour |
| Solar Photovoltaic with total installed capacity of 4kW or less, where installed on a new building before first occupation | 36.1 pence per kilowatt hour | 37.8 pence per kilowatt hour | 37.8 pence per kilowatt hour |
| Solar Photovoltaic with total installed capacity of 4kW or less, where installed on a building which is already occupied | 41.3 pence per kilowatt hour | 43.3 pence per kilowatt hour | 43.3 pence per kilowatt hour |
| Solar Photovoltaic with total installed capacity greater than 4kW but not exceeding 10kW | 36.1 pence per kilowatt hour | 37.8 pence per kilowatt hour | 37.8 pence per kilowatt hour |
| Solar Photovoltaic with total installed capacity greater than 10kW but not exceeding 100kW | 31.4 pence per kilowatt hour | 32.9 pence per kilowatt hour | 32.9 pence per kilowatt hour |
| Solar Photovoltaic with total installed capacity greater than 100kW | 29.3 pence per kilowatt hour | 30.7 pence per kilowatt hours | 30.7 pence per kilowatt hours |
| Stand-alone (autonomous) solar photovoltaic (not attached to a building and not wired to provide electricitiry to an occupied building) | 29.3 pence per kilowatt hour | 30.7 pence per kilowatt hours | 30.7 pence per kilowatt hours |
| Wind with total installed capacity of 1.5kW or less | 34.5 pence per kilowatt hour | 36.2 pence per kilowatt hour | 36.2 pence per kilowatt hour |
| Wind with total installed capacity greater than 1.5kW but not exceeding 15kW | 26.7 pence per kilowatt hour | 28 pence per kilowatt hour | 28 pence per kilowatt hour |
| Wind with total installed capacity greater than 15kW but not exceeding 100kW | 24.1 pence per kilowatt hour | 25.3 pence per kilowatt hour | 25.3 pence per kilowatt hour |
| Wind with total installed capacity greater than 100kW but not exceeding 500kW | 18.8 pence per kilowatt hour | 19.7 pence per kilowatt hour | 19.7 pence per kilowatt hour |
| Wind with total installed capacity greater than 500kW but not exceeding 1.5MW | 9.4 pence per kilowatt hour | 9.9 pence per kilowatt hour | 9.9 pence per kilowatt hour |
| Wind with total installed capacity greater than 1.5MW | 4.5 pence per kilowatt hour | 4.7 pence per kilowatt hour | 4.7 pence per kilowatt hour |
| Eligible Installations with a declared net capacity of 50kW or less Commissioned on or before 14th July 2009 and accredited under the ROO on or before 31st March 2010 | 9 pence per kilowatt hour | 9.4 pence per kilowatt hour | 9.4 pence per kilowatt hour |
| EXPORT TARIFF | 3 pence per kilowatt hour | 3.1 pence per kilowatt hour | 3.1 pence per kilowatt hour |
*Adjusted by the 2010 Retail Price Index of 4.8%
Carbon Credits
Carbon credits are trade-able financial instruments, measured in tonnes of carbon dioxide equivalent (tonnes CO2e). There are four types:
- EUAs – European Union Allowances are issued freely by the EU for several years at one go, for use within the Emission Trading Scheme (EU ETS). The ETS second phase began Jan 1 2008 and ends Dec 31 2012. All second phase EUA must be used within that period.
- CERs – Certified Emission Reductions are issued by the UNFCCC for demonstrable reductions of greenhouse gas emissions in Clean Development Mechanism (CDM) Projects under Article 12 of the Kyoto Protocol.
- ERUs – Emission Reduction Units are credits created under Article 6 of the Kyoto Protocol, Joint Implementation (JI).
- VERs – Verified Emission Reductions are issued by independent bodies for demonstrable reductions of greenhouse gas emissions in projects that, for what ever reason, fall outside of the CDM. Their standards may be just as strict (such as with the Voluntary Carbon Standard (VCS) Gold Standard), or not as stringent. However the market will generally reflect a poorer price for a VER that has been issued to a low or difficult to verify standard.
Carbon Credits can be traded privately, over the counter (OTC through a broker), or on the spot markets like any stock. The largest spot market for carbon credits is the European Climate Exchange (ECX).
For more information, please refer to www.carboncredits.co.uk
