Renewable energy systems purchased now benefit from capital grants and incentive payments

(01/02/2010)

There is currently a golden window of opportunity in which consumers purchasing renewable energy systems can benefit from both capital grants for the purchase of equipment, and additional incentive payments for every unit of heat or electricity produced.

This ‘double-whammy’ will be short lived as the current grant system towards the purchase of systems will be phased out and replaced by a pay per unit system. From April 2010, the government strategy of ‘Feed-In tariffs’, and from April 2011 the Renewable Heat Incentives (RHI) will come into force, both designed to stimulate the uptake of renewable energy in the UK. While this is good news, it means the current grant system towards the purchase of systems will be phased out. However, until then installations will be eligible for BOTH grants.

Feed-in Tariffs have done more than anything else to accelerate the installation of renewable energy capacity in Europe, and are now set to do the same in the UK. From April 2010 anybody with a renewable electricity system (solar photovoltaic panel or wind turbine) will earn a regulated income from every kilowatt hour generated by that system. The tariff is yet to be confirmed by the government – but is set to be up to 36.5p/kWhr based on type and size, plus 5p bonus for power exported to the grid. Households and business users are eligible for the tariff, so it makes a sound economic investment.

Judy Pearson, director of Carlisle-based Eco-Logic Living explains: “Heat is a huge part of household energy consumption and accounts for nearly half of Europe’s total energy demand. Until now this has been largely overlooked. We don’t know yet how the RHI will be implemented or how the payments will be calculated. We do know that all renewable systems installed since 15 July 2009, including heat pumps, biomass boilers and solar panels, will be eligible for the RHI, with differing rates depending on technology and size. As an example, the Renewable Energy Association is predicting that the RHI will pay about 16p per kw for heat generated by solar thermal panels.

“This means that any renewable energy systems purchased between now and April 2011 (April 2010 for solar photovoltaic-or electricity- panels) will benefit from two incentives. There has never been a better time to consider renewable energy solutions.”

Eco-Logic Living is one of the few companies in the North of England that can provide a full service. “From when a customer starts thinking about a renewable energy technology solution and selecting a product or technology,” Judy explained, “right through to installation, maintenance and servicing, we can help. We want our customers to get the solutions that exactly fit their needs and give them the maximum savings. You need never go anywhere else.”

Eco-Logic Living offers advice and guidance on available grants and incentives, and can then design integrated systems, supply and install heat-pumps, biomass boilers, solar thermal, solar photovoltaics, heat recovery, underfloor heating and rainwater harvesting. It has partnership agreements with a number of leading brands so it can find exactly the right solution and price point for every customer. “We’re not just trying to fit our product to their need,’ said Judy. “We go to them, see what they need and find the best solution for each individual.”

“We want to provide a knowledge base,” explained Judy. “It’s part of our added value. It’s a bit of a minefield trying to look at all the grants that are available, which might be the best for you and how you apply. We can guide you through that process and make sure you get the best deal.”

Related categories:  Biofuels and biomass   Environmental legislation   Environmental technologies for Residential and Green homes   Ground and air source heating   Solar power and photovoltaics