Receive hundreds of pounds from government every year for 20 years
Receive hundreds of pounds every year for 20 years
On 1st February 2010, the Government announced that households who install certified Solar Thermal Hot Water Systems will be eligible to receive hundreds of pounds every year (index linked) for 20 years. This is in addition to the money you will save due to reduced energy bills.
What is the scheme
The Goverment's scheme is called the Renewable Heat Incentive (RHI).
What is the catch
The Goverment's only condition is that systems must be installed by an
MCS (Microgeneration Certification Scheme) accredited installer using approved equipment.
How it will affect you
We have already increased our prices to cover the anticipated costs for accreditation (so the prices displayed are the prices you would expect to pay) but we believe that the RHI payments will far outweigh the additional cost of each installation.
How it will affect Suntap
Although it is very expensive and time consuming, Suntap Ltd have decided to apply for MCS accreditation.
Guaranteed £400 off Listed prices
While Suntap are completing the MCS accreditation process you will save £400 off the installed listed prices,
as you will not be eligible for the £400 Low Carbon Buildings Programme grant.
Suntap will install the system and provide all the documentation to the required MCS standards
and the system will be assessed by the certifying authority. Then you will be eligible for RHI grant.
How are annual RHI payments calculated
The amount you would receive each year is based on how much energy your system will be deemed to generate (annual kilowatt hours (kwh) multiplied by 18 pence), and this is calculated using but not limited to:
- How much energy your solar panels generate based on manufacturer and model
- One year's historical weather data, based on your location (interpolated from local weather stations)
- Direction of solar panel (e.g. South)
- Angle of solar panel (angle of roof: e.g. 30 degrees)
- Shade affecting solar panel
Some simple examples
You may appreciate that it is very difficult to give an example of possible RHI payments without taking all the above into consideration, but as a guideline:
- If a 20-tube system was deemed to generate 1,000 kwh per annum:
- the index linked annual payment should be £180
- equivalent to £3600 over 20 years using today's prices
- If a 30-tube system was deemed to generate 1,500 kwh per annum:
- the index linked annual payment should be £270
- equivalent to £5400 over 20 years using today's prices
When do the payments start
Systems installed after 15th July 2009 will be eligible for the RHI payments, but the Incentive scheme is not due to start until April 2011. So a system installed today will be considered to have been installled on 1st April 2011 and the first of the 20 payments should be in April 2012
Is the RHI scheme set in stone
Although the previous government confirmed the solar electricity feed-in-tariff (FIT) scheme, the new government is still consulting over the RHI proposals.
Useful sources of information
- Guardian Article: Solar Water Heating Incentives
- Guardian Article: Pay as you save
- Department of Energy and Climate Change (DECC)
- Consultation on Renewable Heat Incentive (Goverment doc: 87 pages)
