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The Renewable Heat Incentive is part of the Governments Clean Energy Cashback initiative which aims to increase the amount renewable energy produced. Currently only 2 % of all the energy the UK is produced from renewable sources and the Government want this to increase to 15% by 2020. This is because the EU Renewable Energy Directive have a legally binding contract with the Government to ensure these targets are met.

On April the 1st 2010 the first of these initiatives go live in the form of 'Feed-In Tariffs' which aims to pay homeowners and businesses a set price for producing their own energy through renewable sources and pays to buy excess energy from them to feed back into the Nation Grid.

Renewable Heat Incentive is a secondary tariff which aims to go live in Aril 2011, which will differ slightly in that it is administered directly from Ofgem for the sale of fossil heating fuels. These payments are designed to generate a 12% a year return on investment as a reward for producing your own heat.

The tariffs work by paying up to 18p/kWhr to a household for producing it's own hot water and heat. This means installing a renewable heating system such as an air source heat pump, not only reduces your energy bills due to a reduce in the amount you have to buy from the grid, but means the Government will pay you a set amount for the energy you produce. The aim of these two incentives is to try and entice homeowners and businesses to swap their old oil boilers for cleaner renewable energy systems such as solar heating and solar heating.

The Government is being generous as they understand that installing such systems is more expensive than continuing to buy energy from the grid. Either of these new tariffs will generate a significant financial return for homeowners investing in renewable energy system. Better still is that homeowners are eligible for payments for every technology they invest in, not just ones. It is estimated to take between 7-9 years for the full cost of installing a renewable heat source to be re-paid, however the tariff payments last between 15-23 years.

Therefore, once you have paid off the installation costs, you will still be benefitting from much lower energy bills as well as continuing to receive the tariff payments. An added bonus is that these payments are tax-free so you will never be taxed on the amount you receive. This makes the installation of any type of renewable energy system inviting and not only will you receive lower energy bills, you will be part of a significant step to decrease harmful carbon emissions and more specifically, your own carbon footprint.

About Green Air - Green Air was established in 2009 with the specific purpose of promoting the use of a domestic air source heat pump at the heart of any home heating system. We are exclusively committed to a heating technology that we believe delivers the best balance of eco-efficiency and cost effectiveness - domestic air source heating. We only fit the best equipment to make sure that our customers get the best long term benefit. We believe that helping you change the way you heat your home will both help the planet and will save you money.

If you are looking to install a renewable energy system such as an air source heat pump to replace you old oil boilers then contact Green Air Central Heating, for all your renewable energy needs.

WindMax 2KW Grid Tie Wind Turbine Performance - day 2