Homeowners with green heat may be missing out on cash

Homeowners with green heat systems may be missing out on thousands of pounds of cashback from the Government, a Shropshire installer said today.

Martin Dowley said many people who had installed biomass boilers, such as wood pellet systems, as an alternative to oil or gas since 2009 were entitled to money from the Renewable Heat Incentive (RHI).

Mr Dowley, managing director of Shrewsbury-based 7 Energy, said: “The domestic RHI is the world's first scheme to encourage households to invest in renewable heating systems.

“The first figures available show that by the end of May, only 79 households which installed renewable heat technologies eligible for the RHI had had payments approved. Around 200 households have applied so far, however hundreds more will already be eligible  - they just need to apply retrospectively.

“Boilers installed since July 2009 are eligible to receive cashback payments from that date, although the payments will not be retrospective – these will only be made from November 2011 onwards.

“However that is still a significant number of households which could be receiving quarterly payments which in many cases may be more than the actual cost of the fuel.”

This month the Government denied that its fledgling domestic Renewable Heat Incentive was not proving popular, with the Department of Energy and Climate Change saying the initial figures were in line with Government's targets.

Mr Dowley added: “I think there will be an upsurge in applications towards the end of the year as some households are in receipt of another incentive, the Renewable Heat Premium Payment  - launched before the RHI.

“If they are in receipt of the RHPP they can't claim the RHI yet, but can do after either three or six months from the opening of the scheme, depending on when they first applied for the RHPP. It can be confusing, so we'd advise homeowners to speak to their installers who can give advice.

We anticipate that the amount of estimated incentive our customers who have installed a wood pellet boiler will receive over a one year period ranges from £1,874 for an 8KW boiler to £10,540 for our larger 45KW systems.”

7 Energy is a leading UK designer and installer of renewable energy systems, and has offices in Shrewsbury and a showroom in Welshpool. Sales of its award-winning OkoFEN wood pellet boilers have increased by more than 130 per cent in the last year as more and more homeowners switched form traditional gas and oil to green heat systems.

The Government wants to see 750,000 renewable heat installations completed by 2020 as a result of the RHI.


Pete White Pete White

Love Shrewsbury editor and chief developer at The Web Orchard, find out more on petejwhite.com

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