Small Medium Enterprise
Increasingly, companies need to be seen to be reducing their carbon footprint by both their shareholders and customers and to help them achieve this businesses installing renewable energy technologies may be eligible for a financial reward under the government’s Renewable Heat Incentive (RHI) scheme.
RHI was set up to help the commercial sector meet the installation costs of renewable heat technologies and, once installed, incentive payments are paid quarterly for up to 20 years. Payments are made per kilowatt hour (kWh) based on the actual heat output of the system installed. Biomass, some types of ground source and heat source heat pumps and solar thermal and biomethane are all included under the RHI scheme.
Businesses installing solar PV systems may also be eligible to receive tax free payments under the government’s Feed-in Tariff scheme (FIT). Introduced in the UK in April 2010, FITs allow businesses with a renewable energy source that produces under 5mw in capacity to be paid for the electricity they generate, even if the electricity generated is not used by their company. FIT rates are guaranteed at the same index-linked rate for 20 years but are set by the date of installation which reduces three months for new applicants, so those companies that apply early will receive the greatest benefit.
With financial help from government schemes currently available, it makes good business sense to invest in renewable energy technology and companies can benefit from the added bonus of reduced bills and satisfying the ‘green’ expectations of shareholders and customers.