By `Lanre Okanlawon
It’s nearly here. The much
awaited Renewable Heat Incentive!
After so many months of speculations,
official papers have been released for the cash incentive scheme to “reward”
households who key into the use of eligible “green technologies” for heating. The
RHI will be in place to reward households who meet their space heating and/or
hot water needs by using new and renewable energy technologies such as heat
pumps (air source and ground source), biomass and solar thermal panels. At the
moment, more than 1.5 million UK households use boilers and a recent poll
suggests that at least one in every five household plans to replace their
existing boiler.
The latest Government
announcement indicates that the scheme will commence in summer 2013 and the
subsidy payments will be paid over a period of 7 years. The rates are 6.9p-11.5p
for air source heat pumps, 12.5p-17.3p for ground source heat pumps, 5.2p-8.7p
for biomass boilers and 17.3p for solar thermal panels. These will be paid per
estimated units of power generation in kilowatt hours (kWh).
For a house that has an air
source heat pump (9kW) that costs about £8,000 to install, the owner will receive
roughly £880 yearly in RHI payments for seven years, in addition to a continuous
annual savings of about £390. This means the initial installation costs will be
realized in about ten years!
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