Extra Income for UK Off-Grid Homes with the Domestic RHI

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15% of the UK’s homes are off the main gas grid and now homeowners can earn £6,000 every year for 7 years by switching from oil to renewable energy, according to EnergyMyWay’s new guide to the Domestic RHI scheme.

Heating Oil use across the UK, from OFT report Off-Grid Energy, October 2011. OFT1380

Heating Oil use across the UK, from OFT report Off-Grid Energy, October 2011. OFT1380

Those households likely to benefit the most in financial terms are off-grid properties running on oil or LPG with the space to install a biomass boiler or heat pump.

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The Government has announced generous financial incentives for households to switch to renewable heating (subject to State Aid clearance and Parliamentary approval) and thanks to these new cash payments, homeowners will now be able to reduce heating bills by up to the 40% and cover the costs of renewable energy heating systems.

Those households likely to benefit the most in financial terms are off-grid properties running on oil or LPG with the space to install a biomass boiler or heat pump.

Key facts about off-grid homes:

➢    There are around 4 million UK households not connected to the mains gas grid.
➢    51% of off-grid homes in the UK are in rural locations, with heating oil being the most popular fuel source.
➢    Proportionally more off-grid homes are single occupancy (GB) and/or house a person over the age of 60 (UK)
➢    UK average heating costs for heating oil and LGP have risen in the 4 years prior to 2011, with LPG being the most consistently expensive and heating oil being the most volatile.

(Source: Off-Grid Energy, OFT market Study, October 2011, OFT1380)

What is the RHI?

The Renewable Heat Incentive (RHI) gives businesses and homeowners financial rewards for installing renewable energy heating, including Ground Source Heat Pumps, Air Source Heat Pumps, Biomass Boilers and Solar Thermal. Under the scheme, property owners will be paid for every unit of heat they generate as part of the Government’s drive towards lowering carbon emissions in the UK.

The Commercial RHI came into force in November 2011 and UK businesses have already seen savings of up to 40% on their fuel bills and an additional income of thousands of pounds.
Now, after a series of delays, the Government have announced the second stage of the RHI scheme, which will reward homeowners making the switch to renewable energy.

The annual payments will come in from April 2014 and vary according to the technology:

➢    Air Source Heat Pumps 7.3p per kWh
➢    Ground Source Heat Pumps: 18.8p per kWh
➢    Biomass Boilers: 12.2p per kWh
➢    Solar Thermal: 19.2p per kWh

Jason Hobbins, Managing Director of EnergyMyWay, national installers of renewable energy systems, commented on the RHI: “It’s a very exciting time for businesses and homeowners. The RHI completely turns around the idea of a fuel bill – turning an expense into an income.”

What are the costs and returns like?

Example 1: 35kW biomass boiler installed in a large rural farmhouse running on oil.
Cost of installation: £25,000
Fuel saving: £918
Payments due from Domestic RHI: £5,460
Annual financial gain for years 1-7: £6,378

Example 2: 25kW air source heat pump installed in a 5-bedroom barn conversion running on oil.
Cost of installation: £17,990
Fuel saving: £865
Payments due from Domestic RHI £1,557
Annual financial benefit for years 1-7: £2,422

Most properties in the UK will qualify for RHI payments – including domestic and commercial, landlords and self-builders. Basic energy efficiency measures need to be in place before accessing RHI payments, which might include effective loft insulation, to ensure that heat generated from renewable energy is being used most efficiently.

To begin claiming RHI payments, homeowners are advised to contact an MCS-accredited renewable energy installer to discuss their options, have their property surveyed, and understand prices and returns.

About EnergyMyWay

EnergyMyWay have been helping homeowners, businesses and community groups across the UK to enjoy the benefits of renewable energy since 2008. MCS-accredited and members of the REAL assurance scheme, they are trusted installers of biomass, solar thermal and heat pump systems that qualify for RHI payments.

To find out more about the RHI or to arrange a free survey contact your local EnergyMyWay branch, or call 0845 371 3181 / info(at)energymyway(dot)co(dot)uk.

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Amanda Hobbins
EnergyMyWay
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