Now it pays even more to be green!

April 2012 brings positive news for renewable energy users with tariff levels going up by an average of 4.8 per cent.

The Renewable Heat Incentive tariff levels have been adjusted to reflect increases or decreases in the Retail Price Index for the previous year. And what that means is that from April 1, it pays even more to be green.

If you’re submitting an application to receive payments under the RHI scheme for the heat you generate, following approval, your payments will be back-dated to the date of your application being submitted. You will receive the original, lower rate for any heat generated prior to March 31, but after this date you will receive the increased rate.

We did our maths when the RHI was initially announced, calculating that the incentive could pay out more than the fuel actually costs. This remains the case with the new tariff, with the RHI offering businesses and local authorities an opportunity to save thousands of pounds on traditional fuel bills.

Under the new figures, which can be seen in full on our website, eligible heating installations can attract payments of up to £6,820 a year. The Renewable Heat Incentive for the non-domestic sector was introduced on November 28, 2011, and includes industrial and commercial installations, as well as those for the public sector, not-for-profit organisations and charities. It will see tariffs paid on a quarterly basis for a 20-year-period.

Headline figures for the levels of incentive our ÖkoFEN wood pellet boilers could attract, based on average fuel consumption, include £974 for an 8kW boiler using around 3.2 tonnes of wood pellets a year. The pellet cost at current levels stands at £736 ex VAT – a saving of £238 a year. And the cost of the equivalent oil? £1,008.

At the other end of the scale, a 56kW ÖkoFEN automatic boiler using an average of 22.4 tonnes of wood pellets a year could attract an incentive of £6,820, compared to the cost of the fuel at £5,152 ex VAT. What would it cost to use oil to generate the same heat? £7,056.

And of course, there’s still £950 available under the Renewable Heat Premium Payment towards the cost of installing a wood pellet boiler.

Not only does the RHI make financial sense, so does the switch to renewables and wood pellet boiler technology.

Of course, there’s always the small print. There are several regulations overning which projects are eligible for RHI payments. Wood pellet boilers and solar thermal heating are both eligible for the scheme, and all qualifying installations commissioned on or after the 15 July 2009 can receive support.

Equipment and installers must be MCS or Solar Key mark accredited for the systems to attract the RHI. All applications for the RHI must be made to Ofgem, which is administrating the scheme.

Anyone who would like more information or guidance on the RHI and the potential eligibility of projects can contact Organic Energy on 01938 530070 or email info@organicenergy.co.uk

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