Financial Incentives

Business Customers

To encourage the early uptake of renewable energy systems by businesses, the government has put in place a number of incentives to help with offsetting the capital investment. These are:

  •   Enhanced Capital Allowances (ECA)

    These are a straightforward way for a business to improve its cash flow through accelerated tax relief. If a business pays Corporation Tax at 28%, every 1000 spent on qualifying equipment would reduce the tax bill in the year of purchase by 280, with further tax relief in later years.

  •   Interest Free Loans

    The Carbon Trust offers interest free Energy-Efficiency Loans for the purchase of energy-saving equipment. Loans and ECA can be used together. Loans are a cost effective way to replace or upgrade your existing equipment with a more energy efficient version. Small and medium sized enterprises can borrow from 5,000 to 100,000 (subject to eligibility) on an unsecured basis and payable over a period of up to four years. There are no arrangement fees and applying is straightforward.

    Go to   www.carbontrust.co.uk/loans   for more information.

  •   Renewable Heat Incentive

    Solar Thermal and certain types of Heat Pump qualify for payments under the government's Renewable Heat Incentive scheme. For every kWth of energy generated by a Solar Thermal system your business is paid 8.5p. For Heat Pump installations it is 4.5p per kWth for sizes up to 100 kWth and 3.2p for anything above this size.

  •   Feed in Tariff

    Solar PV installations can qualify for payments under the government's Feed in Tariff scheme. Rates start at 16p per kWh for systems up to 4kW and reduce on a sliding scale dependent on the size of the system and whether the property has an Energy Performance Certificate (EPC) in the A-D Band where applicable.

Domestic Customers

There are a number of initiatives available to help homeowners offset the cost of installing renewable energy systems in their property. These are:

  •   The Green Deal

    The Green Deal is a new initiative being launched in October 2012 and open for business in early 2013. The aim of this initiative is to help homeowners and businesses install a range of energy improvement measures in their property with no up front cost - for more details go to our Green Deal page.

  •   Renewable Heat Incentive

    Solar Thermal and certain types of Heat Pump will qualify for payments under the government's Renewable Heat Incentive scheme to be introduced in summer 2013. All systems installed after July 2009 will qualify and for every kWth of energy generated by a Solar Thermal and/or Heat Pump installation your energy supplier will pay you a set amount per kWth. The exact amount is yet to be confirmed.

  •   Renewable Heat Premium Payment

    The Renewable Heat Premium Payment is a one-off fixed payment that contributes towards the installation cost. For Solar Thermal systems it is 300 and for Air Source Heat Pumps 850. This one-off payment is available until March 2013, or until available funds run out. It will not affect eligibility for the Renewable Heat Incentive, when it becomes available.

  •   Feed in Tariff

    Solar PV installations can qualify for payments under the government's Feed in Tariff scheme. Rates start at 16p per kWh for systems up to 4kW and reduce on a sliding scale dependent on the size of the system and whether or not the property has an Energy Performance Certificate (EPC) in the A-D Band.

Note: Incentive payments can only be claimed for systems provided by installers registered under the Microgeneration Certification Scheme (MCS).