Green Energy and Government Grants

As part of specifying installation of a GROUND SOURCE HEAT PUMP for a current project. I’ve been researching the criteria for and availability of government grants for homeowners.

The current RENEWABLE HEAT INCENTIVE – RHI – scheme has been extended to March 2022.
It is available to homeowners to subsidise the cost of various energy saving installations. Heat pumps (Ground Source and Air Source) are central to the government’s green energy strategy. The scheme is administered by Ofgem the energy regulator. A voucher for up to a maximum of £5000 is available from the government for the heat pump installation. Owners of heat pumps will be paid quarterly over a 7 year period for all of the eligible renewable heat generated by the heat pump in the property. Eligible renewable heat includes the energy required for heating the home and providing domestic hot water. In addition, further grants are available for insulation, heating controls, thermostats, and efficient glazing.

For a typical 4-bedroom detached house
Total space heating and hot water requirement - 20,000kWh per annum
Ground source heat pump system capacity - 11kW
Ground Source Heat Pump Seasonal Coefficient of Performance - 3.5 This means that for each unit of electricity consumed, the heat pump produces 3.5 units of heat. The "renewable heat" is the difference between the total heat output and the electricity input. So for this example, for every 3.5 units of heat produced, 2.5 units are classed as "renewable heat".
Renewable Heat = 20,000kWh x (2.5 ÷ 3.5) = 20,000kWh x 71% = 14,286kWh @ 21.17p/kWh = £3,024 per annum
TOTAL ANNUAL DOMESTIC RHI PAYMENT = £3,024 PER ANNUM indexed for 7 years, totalling more than £20,000 returned to the householder.