The UK Government has committed itself to increasing the number of renewable energy systems by between 20 to 30%. To promote renewable energy an incentive scheme has been created which returns financial benefits to the customer.
The Renewable Heat Incentive Scheme pays a pre-determined annual rebate to all householders producing their own renewable energy. The rebate is based on the energy demand of the property and the type of renewable energy system being installed.
On completion of the Government's consultation process it is predicted that the renewable heat incentive scheme will commence in April 2011 for all heat pump installations.
This means that a typical heat pump installation, costing £14,000, will be paid for in 6-8 years through the rebate scheme. The remaining rebate will continue to be paid, for the guaranteed life of the equipment, which ranges from 18-23 years for heat pumps.