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.
- Who can apply for a Renewable Heat Premium Payment grant?
- Individuals who own their own property and reside within England, Wales or Scotland can apply for installations at their primary residence. Please note that this scheme does not apply to residents of Northern Ireland, the Isle of Man or the Channel Islands. If you rent your property privately, approach your landlord as you may need to work with them to apply for the scheme.
- What is the Renewable Heat Incentive (RHI)?
- The RHI will provide payments over a set period of time to generators of renewable heat. It starts in September 2011 for industrial, commercial and public sector installations and Government has announced its intention to make support under the scheme available to households in Autumn 2012.
- How much are the Renewable Heat Premium Payments?
- It depends which technology you are applying for. The voucher values for each of the technologies are listed below.
- Solar Thermal Hot Water - £300
- Air Source Heat Pump - £850
- Ground Source or Water Source Heat Pump - £1250
- Biomass boiler - £950
- Why do I have to use an MCS installer and product or equivalent?
- Installers and products used for the Renewable Heat Premium Payment scheme are certified by MCS (or an equivalent) which is an independent certification scheme designed to certify microgeneration products and installers in accordance with consistent standards. The primary aim of the MCS is to provide consumers with confidence and protection by guaranteeing that microgeneration products and installers who carry the mark meet, and will continue to meet, these robust quality standards.
- What happens if I am very disappointed with the performance of my chosen technologies or it fails to work? Do I have to return the grant if I remove the system say after 4 months?
- Yes, If you get a refund from the installer, you have to return the grant. Contact the Energy Saving Trust for details of how to do this.
Reduce your bills
- Free no obligation survey
- Quick - 3 minute home assessment
- Connect to qualified professionals