Amid all the uncertainty caused by the referendum result, the change of leadership and governmental department changes, there are two really good reasons for considering a switch to renewables right now.
Now the decision has been taken to leave the EU, we’ve entered a period of economic uncertainty that could last years rather than months as the terms of our exit and future trading relationships take shape. So why on earth would this be a good time for homeowners to consider switching to renewables?
There was the threat of a return to 20% VAT in August following a European Court of Justice ruling that the UK’s special 5% rate on renewable energy heating equipment was illegal.
This didn’t happen and homeowners can still capitalise on the special 5% rate which can take off hundreds or even thousands of pounds from the installation cost, depending on the size of the system.
Renewable Heat Incentive scheme
Under this government initiative, homeowners and businesses can receive generous incentives for switching to green energy heating systems.
Designed to neutralise the cost of switching, domestic RHI is paid over 7 years and non-domestic RHI paid over 20 years. In reality, many people actually see a positive return on their investment, which, with interest rates at rock-bottom, looks an even more attractive proposition just now.
However, reforms to RHI are due to be announced in the spring of 2017, when, among other changes, we expect to see domestic RHI payments capped. This will stop people in larger properties taking too much of the RHI pie.
We also expect to see some tariff changes, which could extend the payback period. With lower ongoing operating costs compared with a fossil fuels system, a renewable heating installation, whether it be a ground source or air source heat pump, biomass boiler or solar thermal panel, will pay for itself over time, but potentially not within the 7 years of domestic RHI payments, so acting now makes sound economic sense.
Switch now to avoid uncertainty
While we can’t be sure what the package of RHI reforms will bring in the spring, or what future green incentives might look like post-RHI, we remain confident there will be ongoing support for renewables. Just how generous this will be is uncertain, so, for anyone contemplating a renewable energy heating system for their home, there are some clear benefits to switching now.
If you'd like to discuss the viability of installing renewable energy heating in your home or business and want to understand what technology might be best for you, why not give us a call on 01423 788699 or call into our showroom, just outside Harrogate, for an informal chat.
Alternatively, you can come and see us on our stand at the Harrogate Homebuilding and Renovating Show from 4th - 6th November.