Renewable Heat Incentive and RHPP
Renewable Heat Premium Payments and the Renewable Heat Incentive are schemes that pay you to implement heat generating technology in your home in place of an oil, solid fuel or electrical based heating system.
Renewable Heat Subsidy Basics
The Renewable Heat Premium Payments are a one off grant towards the cost of installing a renewable heat generation technology in your home, such as a heat pump. The grant is between £600-£2,300 depending on the technology. This grant is currently available to any home using a suitable fuel system, and is available alongside the Renewable Heat Incentive which will be launching shortly.
The Renewable Heat Incentive is a regular payment you will receive from the government per unit of heat you generate using your renewable heat generation technology. You will be paid quarterly for 7 years, by which time the technology should have paid for itself. The final details of this scheme have just been announced, with details of how to apply to the scheme to be made available shortly. If you qualify for the RHPP you will qualify for the RHI when it is implemented, and you can receive funding from both the RHPP and RHI – your RHPP grant will simply be deducted from your RHI payments to avoid a double subsidy.
Administering the Renewable Heat Subsidies
The scheme has been introduced in two phases.
1. In the first phase, it consisted of two parts;
a. Long-term tariff support has been targeted in the non-domestic sectors, at the big heat users – the industrial, business and public sector – which contribute 38% of the UK’s carbon emissions.
b. There has also been support of around £15 million for households through the Renewable Heat Incentive Premium Payments.
2. The second phase of the RHI scheme will see it expanded to include more technologies as well as support for households. This transition is proposed to happen in Spring 2014, but details of what the scheme will involve have already been announced – they are available on our Renewable Heat Incentive page.
- How will the Renewable Heat Premium Payment scheme work?
- Individuals will be able to apply for a voucher which will be issued once they fill in the form. Once one of the qualifying technologies has been installed the voucher can be exchanged for grant money. If you are issued with a voucher you are not required to then install equipment but if you do, the voucher is a promise that you will receive the appropriate grant once your equipment has been installed and as long as the relevant conditions of the voucher are met. If you decide you will not use the voucher please inform the Energy Saving Trust, who are administering the scheme, as soon as possible.
- Is there any guarantee should my technology not work to expectations?
- If you use an MCS installer and product (or equivalent) for your installation you should receive a warranty for both the equipment and workmanship of your installation. Ask your installer about this; it is always a good idea to seek more than one quotation and you may wish to consider the type of warranty on offer alongside other considerations such as price. We will introduce you to 3 installers to ensure you get a good range of quotes.
- Can I still receive a grant if a non-certified installer performs the installation?
- Only if an MCS certificated installer commissions the system after the non-certified installer has finished the installation. In this case, the certificated installer must fill out the completion certificate, and you must provide a suitable chain of invoices showing all of the costs of the installation.
- Are biomass hot air systems or wood burning stoves eligible?
- No, only biomass systems which heat water to provide space heating are eligible. However, if your wood burning stove provides the main heating source through a back boiler, it will be eligible. Please be aware that Government is currently considering whether biomass stoves, even where they are the main heating source through a back boiler, will be supported under the long-term Renewable Heat Incentive (RHI). At this stage, there is no guarantee that they will be. DECC will be consulting on support for domestic participants in due course.
- Where do I send the results of the customer survey? How often is it required to be sent?
- Our current plan is for two surveys about six months apart. Details of where to send the survey will be provided nearer that time.
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