Hotting up - the Renewable Heat Incentive

20Jul2010

Heating farmhouses and farm buildings already costs enough, but most experts agree that energy prices are only going one way – up. Farmers have been quick to explore the benefits from the Feed-in Tariffs introduced in April, and now there’s a new financial incentive on the horizon – for renewable heat generation.

The Renewable Heat Incentive (RHI) will be introduced next April and may be able to help you save some money if you are looking to invest in eligible technology. The Incentive gives annual payments which will help cover the cost of your initial investment.

The scheme was developed by the Department for Energy and Climate Change (DECC) and designed to give you a 12% return, lasting for 10-23 years, depending on the technology that you use. Eligible technology includes biomass boilers, ground and air source heat pumps, solar thermal, bio-diesel and bio-methane.

The benefits of this scheme are fantastic. Not only can you heat your facilities in an eco friendly manner, but you also save money. If you have a large farm with a number of outbuildings, you would receive in the region of £26,000 for a wood fuel biomass boiler.

We’ve seen the FiT change the face of on-farm electricity creation, and the RHI has the potential to do the same for heat. If you’re a farmer, it’s worth looking into the scheme now and seeing if it suits your business. Find an agent you trust and talk through your options with them – they can also help you plan and implement a project if you decide to get involved. It pays to get good advice from the beginning. 

Rebecca Seaman is a surveyor at Fisher German. You can contact her on 01858 410200 or email: rebecca.seaman@fishergerman.co.uk

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