Green Energy Incentives for UK Homes

Are you interested in switching to renewable energy or heat? The government offers a variety of incentives for homeowners interested in switching to renewable energy sources such as solar, wind and hydroelectric energy.

These incentives can make the cost of switching to renewable energy lower, as well as providing a source of money or reduced energy costs for homeowners that switch from non-renewable energy sources to green energy.

Feed-in Tariff Scheme

If your home generates electricity via a renewable source, such as photovoltaic solar panels or a wind turbine, you may be able to earn money from your energy supplier through the Feed-in Tariff scheme.

The government introduced Feed-in Tariffs in April of 2010 as a replacement for the previous government grant scheme for renewable energy. The Feed-in Tariff system is the most significant government incentive for home renewable energy.

Homes with solar panels, as well as other renewable energy systems such as wind turbines and hydroelectricity, that generate excess electricity can send the excess power generated back to the grid in exchange for payments.

The amount paid to homeowners varies based on a home’s Energy Performance Certificate (EPC) band and the size of the home’s renewable energy system. The Feed-in Tariff rates are linked to the CPI and will rise alongside inflation.

The Feed-in Tariff is a great incentive for homeowners interested in installing solar photovoltaic panels or other renewable energy technology. Exporting electricity to the grid can significantly offset a home’s energy costs.

Homes that also use renewable energy sources to power appliances and other home items can also save on their energy bills by generating electricity independently and purchasing a reduced amount of electricity from their energy supplier.

You can learn more about the Feed-in Tariff Scheme for UK homes using the Energy Saving Trust website.

Domestic Renewable Heat Incentive

The Domestic Renewable Heat Incentive (RHI) is a government scheme designed to encourage homeowners to switch to renewable heating technology.

By switching to a heating system that uses renewable energy and is eligible for the Renewable Heat Incentive, you could receive a tariff for using renewable heating technology in your home.

The Domestic Renewable Heat Incentive is available for a range of renewable heat technologies, such as biomass boilers and pellet stoves, air and ground source heat pumps, and flat plate and evacuated tube solar thermal panels.

Only products that appear in the Product Eligibility List are eligible for the Domestic Renewable Heat Incentive.

Under the Domestic RHI, you could receive payments for a period of seven years from joining the scheme based on the amount of renewable heat that your heating system produces.

If your home already has renewable heating technology installed and is eligible for the scheme, you can use the Renewable Heat Incentive calculator to work out how much money you could get through the Domestic RHI.

Homes in Northern Ireland that use renewable heating technology are eligible for a separate Domestic Renewable Heat Incentive scheme.