How are generators paid?

Good Energy’s Renewable Heat Incentive pays 4.5p/kWh for the ‘deemed’ output of a renewable heat generator. We’ve put a considerable amount of research into how to calculate, or ‘deem’ the expected generation of a solar hot water generator. We won’t be directly measuring individual levels of generation, but will be offering a financial incentive to generators based on our own assumptions.

Renewable Heat Incentive credits are paid on a biannual basis. These will appear on your Good Energy Electricity supply statement as a credit to you, thus reducing the cost of your bills.

Why are you paying customers for their heat?
There are financial support mechanisms in place for generators of renewable electricity but nothing to support renewable heat generators.

The government hopes to introduce a support mechanism for renewable heat generation in the future but difficulties in measuring heat generation on a small scale is seen by the government as a barrier to the creation of a national support scheme. This lack of financial support is preventing the wider uptake of renewable heat systems.

Good Energy aims to show both Government and the industry how a support mechanism can work. Currently, nobody else is out there demonstrating how something might work. We think we will be about two years ahead of any government scheme, but we also hope that our scheme will precipitate change in the industry.

Why can’t you meter heat generation?
Metering heat is feasible, but the costs of metering will overshadow the financial benefits that a small generator might earn. For example, heat meters cost about 10-times more than those for electricity.

What types of renewable generators qualify for the HotROCs scheme?
HotROCs, for the time-being, will only be available to solar hot water generators.
Whilst there are many different types of renewable heat generator that need and deserve financial support, they are not as numerous as solar thermal and calculating their generation will require a new system. However, we are working on it and we plan to extend the scheme to other technologies in the future.

How do you ‘deem’ my generation?
There is no one, proven, way to calculate the output of a small heat generator. After much research into this, Good Energy has looked at some of the most influential aspects on the productivity of solar hot water generators, these include:

Solar irradiation (the amount of solar energy delivered to a location over a year)
Angle and orientation of the generator (how directly the generator is facing the sun)
Shading of the generator (shading of the generator by trees or adjacent buildings can have a small impact on the system efficiency)
Size of the generator collector area (the bigger the generator, the bigger the potential output).

Our calculation is designed to give an approximation of your generation this acts as a springboard for our on-going research and development in the renewable heat sector.

Why install a solar hot water system?
A properly installed system delivers environmental and some financial benefits by avoiding the use of fossil fuels to heat your water. Good Energy HotROCs aims to help you make a decision that is economically as well as environmentally viable. The end result of our HotROCs project and surrounding research is to make investment in renewable heat generation more economically attractive than putting your money in the bank.

Will I need planning permission to install a solar generator?
Recent changes to ‘permitted developments’ mean that, in most cases, no planning is needed. If you live in a listed building, or a conservation area, you’ll need to contact your local planning office.

Is it suitable for my home?
Solar hot water generators can be used for both domestic and commercial scale applications such as businesses or even heating swimming pools. For a domestic system, individuals will need between 3-4m2 of roof space, and ideally a southeast to southwest facing roof. In many cases, additional space will be required to situate an additional hot water cylinder. Competent, accredited installers will be able to assess the situation of an individual and optimise the installation to suit your needs.

Can you offer any installation advice?
Yes, through the Good Energy Shop we can evaluate if your home is suitable for a solar thermal installation and with our installer partners, we can provide you with a fully installed system. For more information on the microgeneration technologies we provide, go to the Good Energy Shop.

Can I get a grant for my installation?
You may be eligible for a grant towards to the cost of your renewable generator. The Low Carbon Buildings Programme is the government grant scheme and is administered by the Energy Savings Trust. The programme is UK wide (apart from the Channel Islands and the Isle of Man) and will provide grants for renewable technologies. See the grants and funding section of the Good Energy Shop website for more information. In Scotland you may also be eligible for help under The Scottish Community and Householder Renewables Initiative (SCHRI) www.energysavingtrust.org.uk/schri/

How productive is solar hot water?
The UK receives about 60% of the solar energy that is received at the equator and this is more than enough energy to generate a suitable amount of hot water. For every square meter, we receive approximately 900-1300 kWh of solar radiation over an average year -B with the South receiving the most, and the North receiving the least. The efficiency of the particular panels and how suitable the conditions for the installation are will dictate how much of this power can be converted to usable

What happens to the heat that I generate?
Here is a diagram that illustrates how a typical solar hot water generator creates and uses power. Of course, some system set-ups will vary.