Increasingly, businesses need to be seen to be embracing renewable energy technologies and are accountable to both shareholders and their customers. Installing a ground source heat pump (GSHP) or air source heat pump (ASHP) system is one way to help achieve this and businesses may be eligible for a financial reward under the government’s Renewable Heat Incentive (RHI) scheme, making it a good time to invest in renewable energy technology.
RHI was set up to help businesses and non-domestic sectors meet the installation costs of renewable heat technologies and, once installed, incentive payments are paid quarterly for 20 years. Once accredited, your installation will be assigned a tariff level according to the type of technology (ie heat pump) and size. Payments are made per kilowatt hour (kWh) and begin to accrue from the date of accreditation of the installation, based on the actual heat output of the system. For example, a small heat pump of less than 100kWth capacity will receive 4.7 pence per KWh. The scheme is being implemented by Ofgem. For more information visit www.ofgem.gov.uk/e-serve/RHI.
With the financial incentive afforded by RHI it makes good business sense to invest in renewable energy technology and benefit directly from the scheme, the cost of which could well be passed on to those who don’t sign up via their energy bills.