Funding Options at MCA RENEWABLES
The Best Kept Secrets of Funding A Renewable Heating Installation
Most people would like to switch to a renewable heating technology to try and save money on their bills and also to do the right thing ethically by moving away from burning harmful fossil fuels.
We have found that the main thing which stops people making this switch is that the cost to install a biomass boiler or heat pump is significantly more than just replacing an oil or LPG boiler. This reason is both true and false at the same time.
By using available government schemes your contribution towards switching to a biomass boiler or heat pump could be less than the cost of installing an oil or LPG boiler.
The two government schemes available to domestic clients are:
Energy Savings Trust – Interest Free Loan of up to £10,000 available (Scotland only)
Ofgem – Renewable Heat Incentive (RHI) – Receive a tax free income for 7 years by switching to renewable heating.
See the example below.
A householder would like to replace his / her ageing oil boiler with a biomass boiler.
Replacement oil boiler estimate is £3,500
Replacement biomass boiler estimate is £13,000
Deposit on biomass boiler order is£3,000
Remaining £10,000 for biomass boiler order will come from the Energy Savings Trust interest free loan and let’s assume the term is agreed over 84 months (same length of time the income is received from the Renewable Heat Incentive) then the repayments will be £119.05 per month. This will be your monthly outgoings.
Through the Renewable Heat Incentive the householder is estimated to receive £12,155 over 7 years (84 months) which means the incoming amount is £144.70 per month.
So as you can see in this example after the householder has paid their initial deposit of £3,000 the monthly loan repayments of £119.05 are more than covered by the monthly income from the RHI scheme of £144.70.
If we go back to the cost of installing the oil boiler we can see it was estimated at £3,500.
The cost of the biomass boiler would be £13,000 less what they will receive back from the RHI scheme, £12,155 so realistically the householders overall financial contribution towards the biomass boiler was £845 in this case.
Most householders are not aware that these funding options are available. We at MCA Renewables are experts in navigating our clients through any and all application forms and procedures (as we have already done this for many of our existing clients) and we offer a handholding facility to allow our clients to take advantage of these schemes by using our knowledge and previous experience to guide them through the process from start to finish.
To learn more about the Energy Savings Trust Interest Free Loan just click this link…
To learn more about the Renewable Heat Incentive just click this link……
To see reviews from our clients who have had an installation by MCA Renewables whilst also using the Energy Savings Trust Interest Free Loan facility just click this link……..
To book your no obligation home visit to see what MCA Renewables can do for you just click this link…..