Find how to receive a grant and earn money by installing solar thermal panels under the renewable heat incentive (RHI).
In the battle to slow climate change, the government are looking for ways to cut household carbon emissions, which account for over a quarter of total UK emissions.
Following the success of the Feed-in Tariff scheme, which was launched last April and provides cash back for every Kilowatt Hour (kWh) of electricity produced by solar PV panels, the government have introduced the RHI.
What is the Renewable Heat Incentive (RHI)?
A world first, the RHI has been allocated £860 million in government funding and will provide those who install solar thermal panels with cash back for each kWh of renewable heat they generate. The scheme will open first to businesses, industrial premises and the public sector, which are responsible for 38% of the UK’s carbon emissions. Payments will last for 20 years and provide around a 12% return on investment.
In addition, domestic solar thermal installations will also be eligible for tariff payments from 2012. The good news is that the RHI is available to those who have installed solar thermal panels since July 2009 – so you can install now and reap the substantial benefits later.
Get a grant to install solar thermal panels
From July 2011, the government are allocating £15 million of RHI funding to provide domestic customers with grants towards the cost of installing solar thermal panels. This means that 25,000 people will receive £300 for fitting solar thermal panels. Details of the grant scheme are being finalised, but it is thought that to be eligible you must:
Have a well insulated home, as judged by your Energy Performance Certificate.
Provide feedback on how panels perform.
Hire a solar installer registered with the Microgeneration Certification Scheme (MCS).
So how much could you make by installing solar thermal panels under the RHI?
The following figures are approximate and come from the Energy Saving Trust and Department of Energy and Climate Change.
| Cost of solar thermal panels | Annual earnings under the RHI | Grant available from July | Annual savings on fuel bills | Annual CO2 savings |
| £4,800 | Up to £400 | £300 | £50 – £80 | 570kg |
If you want to take advantage of the RHI, make sure you hire a qualified and insured solar panel installer.
