There are various financial benefits, grants, incentives and reductions availabe for the installation of renewable energy technologies.

money 20Independent financial products are available from various banks and building societies and other organisations, aimed at rewarding customers with low interest rates for energy efficient or ‘green’ home improvments and building practices.

Government backed schemes aim to assist with upfront costs and incentivise people to switch to renewable energy technologies.

 

Renewable Heat Incentive (RHI)

The RHI is a government backed measure to incentivise people to produce renewable heat.  It is similar to the Feed-in-Tariff for renewable electricity.  The RHI is administered by the official regulator, Ofgem, who pay the tariffs with money from the treasury.  If your installation is eligible, the RHI can reward you a fixed income for every kWh of heat produced.  There are separate RHI schemes for Commercial and Domestic applicants.

 

Reduced rate VAT on installations of Ground Source Heat Pumps

A reduced rate of 5% VAT is charged on the installation of energy saving materials in residential accommodation.

For an Open-Loop Ground Source Heat Pump this includes the the heat pump, the pipework, system controls and any other installation ancillary to the supply.