The Renewable Heat Incentive has finally launched

After some delay DECC this week confirmed that it’s planned domestic ‘Pay-As-You-Generate’ renewable heat scheme The Renewable Heat Incentive is ready to launch. Under the scheme, participants will be paid a set amount per kWh of heat generated using their system – the scheme covers biomass only boilers, biomass pellet stoves with a back plate boiler, air to water heat pumps, ground source heat pumps, water source heat pumps and both evacuated and flat plate solar thermal systems. The rates paid vary with the technology installed:

Heat Pumps can be funded with the RHI

Heat Pumps can be funded with the RHI

  • Air to Water Heat Pump: 7.3p/kWh
  • Biomass boiler: 12.2p/kWh
  • Ground Source Heat Pump: 18.8p/kWh
  • Solar thermal: At least 19.2p/kWh (Further increases may be confirmed in Autumn)

Anyone with one of these technologies installed will qualify for the scheme providing they installed the system after the 15th July 2009 and they meet some subsequent requirements (mentioned below). Earnings from the scheme will be paid to participants quarterly for seven years after signing up to the scheme. Currently, the total amount to be paid will be determined by an assessment of the house’s heat demand – this is because systems won’t necessarily have the facility to measure and record exactly how much heat is being produced. Households that take out support packages for this facility will be paid an extra £200 a year for biomass boilers and £230 for heat pumps.

What else do you need to do to qualify for the Renewable Heat Incentive?

All applicants to the scheme will need to have a Green Deal Assessment carried out on their property to determine which technologies will save energy in your home – you can find your nearest Green Deal Adviser using our comparison feature. Your installer and installation will also have to be MCS certified (or adhere to an equivalent scheme).

You can apply to both the RHPP and RHI schemes

All applicants can get money towards the upfront cost of their installation with the Renewable Heat Premium Payments Scheme – this is another government scheme giving grants for renewable heat technologies. The grant amounts have increased significantly recently – more information is available in our RHPP blog post here. If you do get support from the RHPP scheme, be aware that the grant amount will be deducted from future RHI payments to avoid paying you twice.

How to apply for the Renewable Heat Incentive

DECC have said that information on how to apply for the RHI will be published shortly – in the meantime, if you have any questions about the scheme you can contact the Energy Saving Advice Line on 0300 123 1234.

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