Clean Energy Subsidys

Clean Energy Cash Back – FITs (Feed-in tariffs) and Renewable Heat Incentive (RHI)

 In April 2010, the Govt. introduced the Feed In Tariff scheme. This is a mechanism whereby there is a guaranteed fixed premium rate paid for electricity generated by from renewable energy installations.

Rates are set for the different technologies and are subject to ‘digression’ (the tariff level available for new generators will reduce annually. The rate of digression varies by renewable energy technology).

There is also an additional payment, the export tariff, for every KWh that is exported to the grid. If the renewable energy system is near to a business, a power purchase agreement can be drawn up for energy to be sold directly to them via a private wire. This can be more profitable than selling energy to the national grid.

The Renewable Heat Incentive (the RHI) is a payment system for the generation of heat from renewable energy sources.  Through the scheme, generators of renewable heat will be paid for hot water and heat which they generate and use themselves. The actual tariff depending on which technology is used and the scale of generation. The technologies that are eligible under the first phase are solar thermal (water), ground source and water source heat pumps, biomass boilers and bio-methane.

The income from both these schemes is tax free for individuals, index-linked to rise with inflation, and currently lasts for 20 years after the technology is installed.

These schemes help make renewable energy systems financially viable.  Renewable energy schemes can bring substantial revenue into a community.

For more details of the schemes and the latest information on the rates, see the DECC website.

Information on installing renewable energy systems in your home can be found on the Energy Saving Trust Website.


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