Renewable Energy Grants And Subsidies
The government guaranteed energy payments make renewable energy highly attractive through the payment of domestic and non-domestic tariffs to households and businesses. There are currently two types of tariff FIT and RHI. FIT is paid for electrical energy produced by renewables and RHI for heat energy.
The Feed In Tariff (FIT)
The government will pay you for each kWh of electricity your system produces. This will be paid regardless of whether you use the power yourself or export it back to the grid. These payments are index-linked and tax-free and are guaranteed by the Government for 20 years.
Energy used on site
All electricity used on site is yours for free which, in turn, will make savings to energy bills. Naturally, the savings will vary depending how much electricity you use on site.
You will receive a further payment per kWh from your energy supplier for every unit of power that you do not use, as this will be exported back to the grid.
The Renewable Heat Incentive (RHI)
This is a payment for generating heat from renewable sources such as biomass and ground and air source heat pumps. The Tariff is paid for 20 years for business and 7 years for domestic users. Payments are guaranteed by the Government and are index linked using the Retail Price Index.
Government guaranteed energy payments will be made for all the hot water and heat generated and used. Depending on what system you use and how large the system is will determine the exact tariff level. The RHI tariffs for Commercial started in November 2011 and residential systems April 2014.