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.

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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.

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FAQs

What is the Renewable Heat Premium Payment?
The Renewable Heat Premium Payment is a scheme to support people who want to install renewable heat technologies. It will also help the government learn more about how these technologies work in practice, prior to the expansion of the Renewable Heat Incentive to the household sector.
How do I apply for a Renewable Heat Premium Payment?
The scheme opened to applications on 1st August 2011. You can apply online by going to the Energy Saving Trust website (www.energysavingtrust.org.uk/RHPP). Your should ensure that you meet the eligibility criteria. It is very important that those with vouchers check they have met all the conditions on that voucher, as claims may not be paid if the scheme terms and conditions and the terms on the voucher have not been met. Receiving a voucher is not sufficient evidence that you are entitled to a grant.
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.
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.
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.
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