The renewable heat incentive offering from the Government, is a significant financial incentive that encourages domestic property owners to install ground source heating as a sustainable energy source. The Government will pay a set rate tariff per kilowatt hour for the renewable heat generated over a seven year period.
For a ground source heat pump, this tariff is currently at 19.33p/kwh. This sum is paid to the owner of the system residing in existing domestic and self-build properties.
The revenue incentives gained from ground source heating can be illustrated in an example of a typical four bedroom house:
Installation cost – £20,000
Total annual RHI payments = 18,243 x 19.33p = £3,526.37
RHI paid over 7 years = £24,684.60 + fuel saved during that period
Using this example, ground source heating will give an excellent return on investment over the seven years.