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Green Deal finance will work with FITs and RHI

Posted by Cathy Debenham on 18 February 2013 at 9:59 am

Mixed messages have been circulating about how - or whether - Green Deal will work with the government's financial incentives for renewable heat and electricity generation. Last week the Department of Energy and Climate Change confirmed in a letter to installers that householders can claim a combination of Green Deal, the Feed-in Tariff (FIT) and the Renewable Heat Incentive (RHI) all at the same time. The letter said:

"Following clarification last week from the European Commission, DECC is now able to confirm how FITs and the Green Deal can work together to support consumers wanting to install microgeneration technologies.

"Customers are able to use Green Deal finance to contribute towards the cost of installing micro CHP, micro wind or solar PV on their property.

"Only the cost savings on their energy bill as a result of generating their own power can be used in calculating the amount of finance support they can get from the Green Deal.  FITs generation and export payments are not included, but the customer can benefit from the Green Deal while also separately receiving FITs payments.

"Subject to finalisation of RHI policy, installations attracting the Renewable Heat Incentive will also be able to benefit from the Green Deal.  Again the amount of support will be limited to the energy bill saving and will not include RHI payments."

A DECC official also confirmed to me that a householder can hold more than one Green Deal plan at once - as long as the combined total still meets the golden rule.

Photo Credit: <a href="">josef.stuefer</a> via <a href="">Compfight</a> <a href="">cc</a> By

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