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 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
How long will it take to receive my Renewable Heat Premium Payment voucher?
If the information you have given in your application satisfies the eligibility criteria of the scheme then you will usually receive immediate confirmation of whether your application has been successful. If you have been awarded a voucher, this will be emailed to your nominated email address within 24 hours. Occasionally applications will be referred to our administration team for further checking. You will be alerted to this once your application has been submitted and you will receive notification of whether it has been successful within 5 working days.
Will I need an environmental permit for my installation?
For biomass boilers and some ground source heat pumps (open loop, or closed loop systems which are also near a river or body of water), an environmental permit will be needed. Contact the Environment Agency for more details.
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.
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