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.
- If I receive a Renewable Heat Premium Payment, will I be eligible for the Renewable Heat Incentive when it is introduced?
- The Government has confirmed that renewable heat installations installed in homes since 15 July 2009 will get the Renewable Heat Incentive once it comes in, provided they meet the eligibility criteria. They have also confirmed that this will include those who receive support under the RHPP scheme. However, the Government has not yet published its proposals for how the RHI will work in the domestic sector, so we cannot at this stage provide more information on this. In particular we cannot guarantee that those eligible for an RHPP grant will also be eligible for the RHI.
- What if I can’t install the required basic energy efficiency measures?
- You must install the appropriate energy efficiency measures to be eligible for a voucher so this is a requirement only where it is possible to install the measures. So, for example, if you live in a solid wall property that does not have cavities then you do not need to install cavity wall insulation.
- 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.
- 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.
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