Current Government funding aims to encourage the adoption of low carbon and carbon neutral energy systems.
Low carbon systems use fuels such as electricity and gas but more efficiently. They include Combined Heat and Power (CHP) systems which capture and reuse any excess heat that is produced. For example, using the surplus steam produced by a gas boiler system to create heating. In addition, Air Source Heat Pumps and Ground Source Heat Pumps are also low carbon systems. They capture the natural temperatures in the environment and regenerate them to create supplementary heating.
Carbon neutral (or zero carbon) technologies produce no carbon emissions and use naturally renewable energy such as solar, wind, waves (hydro) and underground (geothermal).
The Government grants which support the use and installations of these technologies are the Feed-in Tariff (FiT) and the Renewable Heat Incentive (RHI). There is also the supplementary Renewable Heat Premium Payment (RHPP).
Feed in-Tariff
The recently introduced Feed-in Tariff (FiT) gives payments to those who have their own (usually small scale) low carbon or zero carbon electricity generating systems. These are also known as microgeneration technologies. Examples include the Baxi Ecogen dual energy system.
FiT is also known as the Clean Energy Cashback Scheme.
FiT gives a payment for all the electricity that is produced. It consists of two parts; a generation tariff and an export tariff.
The generation tariff is a payment for every kilowatt hour (kWh) of electricity generated (the payment depends on the type of system installed). The export tariff gives a payment for every kWh of surplus electricity exported back to the electricity grid.
FiT is tax free and is paid over a period of a minimum of 10 years following registration.
For small and medium size installations, both the installer and equipment must be certified under the Microgeneration Certification Scheme (MCS). Baxi can help you find your nearest, suitable installer - find an installer. You can also visit the MCS website to search for a local installer. Systems eligible for FiT support include the Baxi Ecogen micro-CHP, Solar PV (Photovoltaics) and wind turbine and hydro-electric water powered systems.
Learn more about how to Get FiT with Baxi Ecogen.
To claim, you must notify a chosen FiT provider (normally your utility provider/ previous utility provider) and they will pay the tariff directly to you.
We have created a short film about FiT. You can also read our press release and visit our Feed-in Tariff FAQs page.
Renewable Heat Incentive (RHI)
Similar to the Feed-in Tariff (FiT), the Government's Renewable Heat Incentive (RHI) gives payments for self generated renewable energy. However, unlike FiT, RHI does not include an export tariff as it supports systems that do not export energy back to the grid.
The RHI benefit is open to everyone from households and landlords to businesses, farms, schools, hospitals and care homes; even entire communities.
RHI quarterly payments are claimed by and paid to the owner of the installation and are based on meter readings. The level of payment depends on the type of technology installed and the size of the system.
The scheme has two phases -
Phase 1: Will support the industrial, business and public sectors (these areas currently generate 38% of the UK's carbon emissions). Initial funding of £15m has been allocated to support heating installations from spring 2011 onwards.
Phase 2: (Due in October 2012) supports domestic installations with long-term tariff payments. Installations completed before 15th July 2009 are not eligible.
As with FiT both the installer and equipment must be certified under the Microgeneration Certification Scheme (MCS).
Your installer will be able to help you register your system with Ofgem and sign up for accreditation and payments.
Baxi has a range of MCS certified biomass boilers and solar thermal systems that are suitable for RHI support. See the Baxi Bioflo, the Baxi Geoflo and the range of Baxi Solar Thermal hot water options for more details.
Renewable Heat Premium Payment (RHPP)
In addition, to support Phase one of RHI the £15m Renewable Heat Premium Payment (RHPP) is all set to be announced in May 2011.
In areas that are unable to receive a gas supply, RHPP will give funding for installations that replace and update old heating and hot water systems with zero carbon or low carbon technologies (in particular installations of Ground Source Heat pumps, biomass boilers and solar thermal systems).
More information can be found on our RHI and RHPP pages.
Alternatively, additonal information about the RHI and RHPP can be found on the RHI website.
