What level of financial support might I receive if I install a hybrid heating system?


Under the Renewable Heat Incentive, homeowners in Great Britain may be able to receive payments for renewable technologies installed as part of a hybrid heating system. The RHI scheme is scheduled to run from spring 2014 and payments will be made for seven years. The amount a homeowner will receive will depend on a range of factors, including household energy usage, the efficiency of the equipment and the kind of technologies installed. To provide an idea of the kind of payments that might be received, we have provided an example below, based on the energy use of an imaginary home, previously heated by oil, now heated by hybrid systems.

For this example, we have assumed that the annual energy needed for household heating and hot water is 23,000 kilowatts (KWpa). For the oil only system, running at 95% efficiency, this would have cost the homeowner £1,400 based on average 2013 prices.

For the hybrid system, we have assumed the oil heating will be used for 90 days each year and that the renewable technologies will meet the full needs of the household for the remainder of the year.

Renewable Heat Incentive tariff payments

       

 

 

Air source heat pump (ASHP)

   

Solar water
heating

 

Seasonal Performance Factor (SPF)

2.7

   

n/a

 

Energy requirement (kW for 275 days)

17329

   

2000

 

Eligible heat (kW p.a.)*

10911

   

2000

 

RHI Tariff (£/kWh)

0.073

   

0.192

 

         

 

RHI payment per annum

£796

   

£384

 

         

 

Total return over 7 years

£5,575

   

£2,688

 

         

 

* Note that not all the heat generated by an air source heat pump is considered eligible for RHI payments. Only ‘renewable heat’ is eligible, that is energy generated from the air net of the electricity used to run the heat pump.

         

Oil + ASHP hybrid heating system

       
         

Running cost of ASHP (SPF 2.7 for 275 days)

£834

     

Running cost of oil (90 days)

£340

     

Running cost of hybrid p.a. (without RHI payments)

£1,174

     

Less RHI payments p.a.

£796

     
         

Running cost of hybrid p.a. (with RHI payments)

£378

     
         

Oil + ASHP + Solar hybrid heating System

       
         

Running cost of ASHP (SPF 2.7 for 275 days)

£738

 

 

Running cost of Solar (for 275 days)

£0

 

 

Running cost of oil (for 90 days)

£340

     

 

Running cost of hybrid p.a. (without RHI payments)

£1,078

     

 

Less RHI payments p.a. (heat pump)

£705

     

 

Less RHI payments p.a. (Solar)

£384

     

 

Running cost of hybrid p.a. (with RHI payments)

-£11

     

 

Further Information

Look after your oil tank

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