U.K. Solar Heating to Recieve Massive Boost from New Incentive Scheme

U.K. Solar heating to receive ‘massive boost’ from new incentive scheme

Payments worth up to $5,064.48 over seven years .

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Recently, the U.K. Department of Energy and Climate Change (DECC) announced the details of the domestic Renewable Heat Incentive (RHI), a game-changing subsidy scheme solar heating and other renewables in residential properties.

uk solar heating

The scheme will open for applicants in Spring 2014, but installations since July 15th 2009 are eligible to join.

This is a massive boost for the solar heating market in the UK,” said Stuart Elmes, CEO of Viridian Solar “the value of the incentive is on a whole new level, there’s nothing like it anywhere in the world. From now on people can install solar heating with absolute confidence that their system will be able to join the scheme, and knowing in advance what their RHI payments will be worth.

The Solar Trade Association has calculated the typical value of the RHI“In fact there’s every reason to install right away because a Renewable Heat Premium Payment (RHPP) grant of $934.98 is available in the run up to the launch.  Although the value of this grant will be subtracted from the RHI payments, householders installing between now and the start of the scheme will in effect be receiving their payments early.”

The details of the scheme for solar heating are as follows:

  • The scheme is open to single family homes, owner-occupied or private and social landlords.  It is also open to self-build new homes, but not new build homes bought from a housing developer.
  • To qualify, the installation must be accredited by the Microgeneration Certification Scheme (MCS), ensuring a minimum quality for equipment and installation company
  • In addition, the property must have cavity wall insulation (where a cavity is present) and at least 250mm of loft insulation.  The energy efficiency measures are to be confirmed by the household paying for a Green Deal Assessment (at a cost of around$155.83-150).
  • Householders will be paid 19.2 pence per unit of solar heat (kWh) generated for the first seven years (see table for typical values).
  • The amount of heat energy per year will be calculated by the solar installer using an approved solar energy deeming method.  This method will be in the next update to the MCS installer standard MIS 3001 and covers solar domestic hot water only.
  • The scheme will be administered by OFGEM

The Solar Trade Association has participated in the development the solar energy deeming calculation and published typical values are shown in the table above. The householder would also benefit from fuel bill savings over the life of the solar heating installation, these savings would be in addition to the RHI payments.

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