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Being more energy efficient can help reduce your household bills, keep your home warm and reduce your impact on the environment. Here we explain the schemes, who to talk to about applying and how you can get additional advice and support.

Incentive Scheme 1 – Feed-in Tariff

The Feed-in Tariff (FIT) scheme is a government programme designed to promote the uptake of renewable and low-carbon electricity generation technologies.

Introduced on 1 April 2010, the scheme requires participating licensed electricity suppliers to make payments on both generation and export from eligible installations.

The FIT scheme is available for anyone who has installed, or is looking to install, one of the following technology types up to a capacity of 5MW or 2kW for CHP:

  • Solar photovoltaic (solar PV)
  • Wind
  • Micro combined heat and power (CHP)
  • Hydro
  • Anaerobic digestion (AD)

FIT payments are made quarterly (at least) for the electricity your installation has generated and exported. Payments are made based on the meter reading you submit to your energy supplier (we call them your FIT licensee).

FIT payments are made by your energy supplier from the date you become eligible for the scheme. The number of new installations that can receive support under the FIT scheme each month is capped – we call these deployment caps. Applications queue for entry into the FIT scheme:

  • For small installations (up to 50kW), by date and time the installation’s MCS certificate was issued.
  • For large installations (51kW to 5MW), by the date and time the application was received by Ofgem.

On 19th July 2018 the Department of Business Energy and Industrial Strategy (BEIS) published a consultation in which they state their intention to close the FIT scheme to new applicants from 1st April 2019, barring several exceptions.

For more information visit the Ofgem website – https://www.ofgem.gov.uk/environmental-programmes/fit

Who runs it?

Ofgem administers parts of the scheme. But by and large specific electricity suppliers handle applications and payments.

What is it?

  • A regular payment from an electricity supplier if you generate your own electricity from a renewable source.
  • Homes, businesses and community groups can all apply.
  • The amount depends mainly on what technology you use and how much you can generate.

How do I get it?

  1. Apply to an electricity supplier – for a list of participating companies click here.
  2. Before applying, you need either approval through the Microgeneration Certification Scheme (‘MCS’) or accreditation under ROO-FIT. Which one of these you need depends on the technology you use and the amount of electricity you generate.

 

Incentive Scheme 2 – Renewable Heat Incentive (RHI): Domestic and Non-Domestic

This scheme has two parts: non-domestic and domestic.

Each has its own application process, together with different tariffs, joining criteria and rules.

Who runs it?

The scheme is run and managed by Ofgem. You can find out more on their website. If you already have a renewable heating system, you have up to 12 months to apply to the scheme from its commissioning date. That is the date your installer tests and signs off the system (you can find it on your Microgeneration Certification Scheme certificate).

What is it?

  • A payment for producing heat from a renewable source and using it to warm your house or business.
  • You’re paid a tariff rate for each unit of energy you generate.
  • Domestic payments are spread over seven years.
  • Non-domestic payments are spread over twenty years.

The Non-Domestic Renewable Heat Incentive (RHI) is a government environmental programme that provides financial incentives to increase the uptake of renewable heat by businesses, the public sector and non-profit organisations. Eligible installations receive quarterly payments over twenty years based on the amount of heat generated. The scheme covers England, Scotland, and Wales and includes small and large businesses, hospitals, care homes, schools, and organisations with district heating schemes where one heating system serves multiple homes.

Read more on their website: https://www.ofgem.gov.uk/environmental-programmes/non-domestic-rhi

The Domestic RHI – if the renewable heating system heats only a single property which is capable of getting a domestic Energy Performance Certificate (EPC) then you can apply for the domestic RHI. The EPC is the proof required by the Ofgem to assess your property as a domestic dwelling and without one you are unable to join the scheme.

Discover more: https://www.ofgem.gov.uk/environmental-programmes/domestic-rhi

You can claim RHI support for:

  • Biomass (wood fuel) boilers
  • Biomass pellet stoves with integrated boilers providing space heating
  • Ground to water heat pumps
  • Air to water heat pumps
  • Solar thermal panels (flat plate or evacuated tube only) providing hot water for your home
  • Air to air heat pumps
  • (Potential) for water source heat pumps for domestic RHI

How do I get it?

  1. Give us a call on 01621 892613 and we will be happy to provide you with some information and discuss your options.
  2. Visit the Ofgem website – Domestic and Business.

 

Incentive Scheme 3 – Green Deal

The Green Deal helps people make energy-saving improvements to their homes and finds the best way to fund these improvements. The Green Deal is a UK government policy initiative that gives homeowners, landlords and tenants the opportunity to pay for home improvements through the savings on their energy bills. At the heart of the Green Deal is the rule that savings on bills will exceed the cost of the work undertaken.

Energy saving upgrades can include things such as:

  • Double glazing
  • Insulation, such as solid wall, cavity wall or loft insulation
  • Heating
  • Draught-proofing
  • Renewable energy generation, such as solar panels or heat pumps

Who runs it?

Ofgem does not administer this government scheme. It is run by the Green Deal Oversight and Registration Body.

How do I get it?

  1. Start by getting a Green Deal Assessment. You may have to pay for this.
  2. To find an assessor, go to: gdorb.decc.gov.uk/consumersearch.

If an assessment recommends improvements, you can arrange for financing and installation.

 

Incentive Scheme 4 – Energy Company Obligation (ECO Scheme)

The ECO scheme means that gas and electricity suppliers with more than 250,000 domestic customers are obliged to help households with energy-efficiency measures. These include all the big name energy suppliers such as; British Gas, EDF Energy, Eon, Npower, Scottish Power and SSE.

Energy Company Obligation is the government’s umbrella term for its programme to make houses in the UK more energy efficient. This aims to cut carbon emissions and reduce fuel shortages. Effectiveness of the scheme will mean that energy savings of £450 million throughout Britain.

Read more: https://www.which.co.uk/reviews/home-grants/article/home-grants/energy-company-obligation-eco

Energy efficient home improvements can include:

  • Boiler replacements
  • Loft insulation
  • Cavity wall insulation
  • Solid wall insulation

Who runs it?

Ofgem administers this scheme.

What is it?

  • An obligation for energy companies to install energy-efficiency measures in homes
  • Measures include loft and wall insulation, and more efficient boilers. Companies can choose which homes they treat and how much to fund.
  • The carbon and cost savings of these measures count towards companies’ obligations.

How do I get it?

  1. See section on the Energy Company Obligation
  2. Speak to an energy company (it doesn’t have to be your own).
  3. Speak to an installer.
  4. Speak to the Energy Saving Advice Service.

What are the main obligations?

  1. Carbon Emissions Reduction Obligation (CERO) Under CERO, obligated suppliers must promote ‘primary measures’, including roof and wall insulation and connections to district heating systems. Some CERO must also be delivered in rural areas.
  2. Home Heating Cost Reduction Obligation (HHCRO) Under HHCRO, obligated suppliers must promote measures which improve the ability of low income and vulnerable household to heat their phones. This includes actions that result in heating savings, such as replacement or repair of a boiler.

So, there you have it the top 4 energy efficiency incentive schemes. If you would like some impartial advice about your rural home or business heating. Or information on boiler grants available in your area, contact us today! We’d love to hear from you.


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