Renewable Heat Incentive to Launch in July With Phase One: The Premium Payment Initiative

LEICESTER, UNITED KINGDOM--(Marketwire - June 17, 2011) - From July, the Renewable Heat Incentive comes into force and Heat Pump Guide, the UK's leading resource for exhaust, ground and air source heat pumps, says the launch of the Renewable Heat Incentive is an ideal way to encourage more and more homeowners and businesses to switch to using renewable energy.

The first phase of the RHI kicks off with the RHI Premium Payment, which will see up to 25,000 installations supported by a one-off Premium Payment, which has been designed to help people cover the purchase price of green heating systems. Those taking up the Premium will then be able to apply for a RHI tariff - the second phase of the initiative - which comes in to play in autumn 2012, when the Government's Green Deal begins, as will anyone who has had eligible equipment installed from July 2009. The tariff, which will run for 20 years, will provide fixed annual payments to people who install renewable heating systems.

A renewable heat system is any type of device which allows a property to generate central heating and water heating from a renewable source of energy, like the sun or air. There will be clear eligibility criteria in order to qualify for a Premium Payment and recipients need to have a well-insulated home based on its energy performance certificate and must agree to give feedback on how the equipment performs.

The Department of Energy and Climate Change (DECC) have announced that the following amounts are likely to be available:

- Solar Thermal - £300/unit

- Air Source Heat Pumps - £850/unit

- Biomass boilers - £950/unit

- Ground Source Heat Pumps - £1,250/unit

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The UK needs to move away from fossil fuel based heating to forms of electric heating like heat pumps

Heat pumps use electricity to extract heat from the environment, usually from the ground or the air around us. Over three quarters of the energy produced by the heat pump comes for free from a sustainable, renewable source. Unlike other sources of renewable energy like wind and solar, the heat in the ground or the air is always available for use.

Professor David Mackay, the newly appointed Chief Scientific Officer for the Department of Energy and Climate Change, has reiterated his support for heat pump technology in comments he made recently.

“Setting fire to chemicals like gas should be made a thermodynamic crime,” he said. “If people want heat they should be forced to get it from heat pumps. That would be a sensible piece of legislation.”

Professor Mackay made his comments as part of wide ranging analysis of the problems the UK faces in meeting the challenge of climate change. He believes that the UK needs to move away from fossil fuel based heating to forms of electric heating like heat pumps. The low carbon electricity needed will be generated from a big increase in nuclear capacity as well other renewable sources like wind and solar, according to Professor Mackay. Almost 50% of the UK’s CO2 emissions are generated heating buildings, mostly through the burning of gas and oil.

Some European countries, like Sweden have already moved to a low carbon electricity generating grid using a combination of nuclear and renewables. It’s no surprise that heat pumps are now used to heat nearly all new houses in Sweden.

“North Sea gas is running out fast and other sources of gas may prove unreliable over time,” Murray Treece, Managing Director of Econic commented. “We quickly need to useother ways to heat our homes and heat pumps are one of very few viable alternatives to provide the central heating and hot water we’ve become used to.”

The Greener Homes Scheme

The Greener Homes Scheme (the “Scheme”) provides assistance to homeowners who intend to purchase a new renewable energy heating system for existing homes. The scheme is administered by Sustainable Energy Ireland (“SEI”) and aims to increase the use of renewable energy and sustainable energy technologies in Irish homes.

Using Renewable Energy for Heating

We, in Ireland are heavily reliant on fossil fuels which are a limited resource, cause emissions that are harmful to the environment and,  as we have seen recently, can be subject to volatility of price and availability. The Irish Government wishes to reduce this reliance and move towards making greater use of our renewable energy resources. This diversification can be good for the economy because of the longer term availability and constancy of supply and good for the environment through the reduced emissions of Carbon Dioxide(CO2 ).

The main sources of renewable energy in Ireland are the sun (solar energy), the wind, moving water (hydropower, wave and tidal energy), geothermal (heat below the earths surface) and biomass (wood, certain wastes and energy crops). One of the main benefits of using renewable energy is that it reduces emissions of carbon dioxide. Ireland has an abundance of  several of these resources and their effective development and use will reduce emissions of harmful greenhouse gases and our reliance on imported fossil fuels.

Homeowners can play their part by choosing a renewable heating system (solar, biomass or heat pump based) that meets their particular needs in terms of heat demand, budget and environmental considerations. Doing so will help Ireland move down a path towards more sustainable energy use, ultimately benefiting the environment.

Will a renewable energy heating system save me money?

Where a renewable energy technology uses a “free” energy source like sun shine, you no longer have to worry about fuel prices increasing. On the other hand heat pumps require electricity to operate and biomass equipment requires a wood based fuel – so both of these remain vulnerable to fuel / energy price fluctuations.

The guaranteed way to reduce your energy bills is to only generate as much heat as you require, at the time you want it, and to maximise the value of that heat by preserving it within your home. We strongly advise anyone planning to invest in a renewable heat system to investigate all methods of increasing the overall energy efficiency of their homes. Effective wall and attic insulation, good time and temperature controls of your heating and high performance windows will all reduce the heat required to have a warm and comfortable home. Purchasing household electrical equipment with an 'A' energy rating e.g. fridges, freezers, washing machines and light bulbs* reduces electricity consumption. This approach will have a significant impact on your energy bills and will also protect you from any price variation in your primary fuel source.

Why offer a grant?

Renewable energy heating systems are new technologies which, while proven and highly popular overseas, have yet to become widespread in Ireland. The Irish Government, through SEI, wishes to encourage people over the next 5 years to green their homes  by contributing to the initial investment cost of installing a renewable energy heating system. The government believes that this will help ensure a faster uptake of renewable heating systems which will underpin the development a long term market, while enabling homeowners to play their part in reducing carbon dioxide emissions.

TAKEN FROM SEI SUSTANABLE ENERGY IRELAND - Site here