At the current rate of uptake of renewable energy heating solutions, the UK Government would only achieve 1% instead of its target of 15% of heat demands of the United Kingdom by 2020. With time ticking away, the Government has launched the following incentive schemes and renewable energy grants that, it is hoped, will kick start a change within the private sector.

Renewable Heat Incentive (RHI)

The Renewable Heat Incentive will commence in April 2011 and is aimed at both domestic and commercial properties which also embrace social landlords together with charitable organisations.

It comes in the form of a “cashback” payment dependant on the size and type of installation used. For example a medium domestic property could expect up to £1200 per year for 23 years to be paid back to them under this scheme, but a large industrial building of, say, 1,200m2 , attract an annual rebate of £11,000 by installing a ground source heat pump providing it is installed by an MCS (Microgeneration Certification Scheme) accredited installer.

Pay As You Save scheme (PAYS)

Starting in 2012, the PAYS scheme is to offer finance to reduce the capital costs of installing a renewable energy heating system. Aimed at homeowners, the loan stays with the property, rather than the person, in order that the original tenant is not penalised. Combining this scheme with the RHI payments can lead to staggering savings and even a self financing installation.

Householder Grants

In England and Wales a grant of up to 30% (with a ceiling of £1200) of the cost of installing a heating system that uses renewable energy as it’s heat source whilst in Scotland this grant can be as great as £8000.

Community Grants

Up to 50% of the installation cost for a renewable energy heating system (together with funding to improve building insulation) on community sites such as village halls can be claimed from an incentive funded by the Big Lottery Fund.

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