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.
- 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.
- 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.
- 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.
- What information will you gather for the monitoring and what will you do with all the information you collect?
- It is important to make sure you are comfortable with the idea that you may have to complete a survey on aspects of your heating system such as its performance. It is possible that this information may become public (but not your name, your full address, your date of birth or any other information which would allow the comments to be attributed to you). In addition, the Government will pay for a percentage of houses to have additional meters put in them, to monitor energy use from the new equipment. These meters are likely to send information about energy use automatically back to the Energy Saving Trust, who are administering the system, so this will not require any additional work from the householder.
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