Incentives

Government Grants

The Government have just announced that they are introducing with immediate effect, Premium Payments (grants) towards the installation of Solar Thermal panels, Air and Ground source heat pumps and Biomass boilers probably to include wood burning stoves with back boilers.

These grants are available on a first come first servce basis with vouchers being issued for approved applications.  Vouchers will be valid only until 31st March 2012 or until funds run out before that date.

For more information please contact us at our showroom - 01202 888561.

Microgeneration Certification Scheme

Microgeneration Certification Scheme (MCS) is a guarantee to the customer that the installations carried under the scheme will be a recognised standard of competence.

In order that a renewable installation can be eligible for Feed in Tariffs, it must be undertaken by an MCS Installer using equipment certified under the scheme.

The MCS scheme covers everything in connection with the installation, from the presentation of the quotation, method of payment, anticipated output and final certification documents with a registration number that will enable the client to claim their Feed in Tariffs.

Feed in Tariffs

Up until very recently, installation Grants were available from the Carbon Trust for renewable technologies but these are now at an end. Last April, a new system of Feed in Tariffs was introduced for Solar Photovoltaic Systems.

In a domestic situation, an installation of up to 4kW output is eligible for a feed in tariff of 43.3 pence for every kWH (Kilowatt Hour) with an additional allowance of 3.1 pence per kWH for everyone exported to the grid. Whilst most systems are currently installed with only a generation meter and not an export meter, FIT suppliers tend to take the view that 50% of the electricity generated is exported back to the grid.

As we understand the situation, this rate of tariff will be available until April 2012 when it is likely to be reduced in line with the anticipated fall in the cost of installations. The general principal is that a rate of return will remain around 10% on capital invested whilst currently the tariffs are index linked to inflation and paid free of tax regardless of income.

A legal agreement is drawn up between the FITs supplier and the owner of the installation which currently lasts for 25 years. It is transferable should the owner wish to move properties.

Renewable Heat Incentive

This is the proposed new Renewable Heat Incentive (RHI) now set to be introduced in June 2011. The idea is that rebates will be paid to those who generate heat (measured or estimated in Kilowatts), from renewable installations. The proposal is to cover Solar Thermal panels, Air and Ground source heat pumps, Biomass systems etc. but currently excludes wood burning stoves with back boilers. There are suggested Tariffs set out in a discussion document but more will be known about the rates which should be published this month of February 2011.  This scheme however, will also be administered under MCS.

VAT

Announced in the last budget was the increase of standard rate VAT to 20%. However, HM Revenue and Customs have confirmed that there is no proposed change in the rate of 5% currently available for installation of renewable systems of most kinds including Solar PV, Solar thermal, Air and Ground source heat pumps, Biomass boilers and even wood burning stoves provided that they are solely designed and designated as wood burning only (not multi-fuel) and that they have a boiler which will produce hot water for domestic use and space heating.