Clean Energy Cash Back

The Government's Clean Energy Cash Back policy is designed to incentivise householders to adopt renewable energy systems so that the UK can meet it's target of producing 15% of its energy from renewable sources by 2020.

From April this year producers of renewable electricty will be paid a 'feed-in-tariff' or 'FiT' for every kWh that they  produce. The tariff varies between the source of electricity, size and type of installation, but a domestic homeowner retrofitting a standard size PV system will be paid 41.3p per kWh every year for 25 years - tax free and inflation adjusted.

From April 2011 the Government proposes to introduce an equivalent mechanism for producers of renewable heat - the 'Renewable Heat Incentive' or 'RHI'. For producers of solar hot water this payment is proposed to be 18p per kWh each year for 20 years - tax free and inflation adjusted.

These payments are designed to make the installation of domestic renewable energy systems such as Solar PV or Solar Hot Water a financially attractive decision as well as an ecological one.

The application process for these tariffs is straightforward and we can assist by advising on this process. Our quotations include a detailed calculation showing the amount of energy (and hence incentive payment) that the specificed system is estimated to produce. The tariffs are only available when a certified product is installed by a MCS approved installer.

More information on these tariffs can be found at the Department of Energy and Climate Change website here Feed-in-Tariffs and here Renewable Heat Incentives (RHIs).

 

Low Carbon Buildings Programme

The Low Carbon Buildings Programme (LCBP) was closed to new applications for installation grants on the 24th May 2010.

 

Warm Homes Greener Homes

The Government recognises that many households will not be able to afford the upfront cost of installing renewable energy systems even with the annual clean energy cash back payments.

The Government has unveiled its 'Warm Homes, Greener Homes' strategy for household energy management. This envisages long term low interest rate loans, similar to mortgages, that will make energy efficiency improvements and renewable energy systems affordable. The idea is that the cost of repaying the loan will be lower than the clean energy cash back payments received and savings on utility bills made. This will bring renewable energy generation within reach of homeowners without capital to invest today.