The world’s first financial incentive of its kind to revolutionise the way heat is generated and used in buildings has been launched by Energy Secretary Chris Huhne.  A £860m government scheme is expected to increase green capital investment by £4.5 billion up to 2020, stimulating a new market in renewable heat.   The Renewable Heat Incentive (RHI) will support emerging technologies and businesses in the UK, strengthening security of supply by reducing dependence on fossil fuel heating and emissions. 

Anything from a pub to a public library, a school to a power plant will be eligible under the RHI to install technologies like biomass boilers, heat pumps and solar thermal. The tariffs will be paid for 20 years to eligible technologies that have installed since 15th July 2009 with payments being made for each kWh of renewable heat which is produced.  Once in the scheme the level of support an installation will receive is fixed and adjusted annually with inflation. However, as with feed in tariffs, we expect the levels of support available for new entrants to the RHI scheme will decrease over time as the costs of the equipment and installation reduce through economies of scale. Commenting on the scheme Associate Member Mark Bufton owner of M Bufton Plumbing & Heating said "this is potentially very advantageous for commercial companies, installing a bio – mass boiler or other accredited renewables such as ground source heat pumps and solar thermal will give clients the opportunity to generate a guaranteed income for 20 years at a set rate. Typically the capital cost of new plant will payback in up to 10 years giving income for a further 10 years. In addition to the income generated by the RHI tariffs new renewable systems will yield year on year savings from cheaper fuel costs.

At M. Bufton we are keen to offer a “one stop service” covering feasibility analysis, plant and equipment selection, system design, installation and financial advice. It is important that  the correct independent choice of plant and systems is made to ensure maximum technical, environmental and financial benefits are gained. We are keen to work with clients from concept stage through design, installation and after care services to ensure the best solution to fit their needs.

M Bufton Plumbing & Heating Services Ltd can be contacted on 01686 623238 http://m-bufton.co.uk