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.
- What are the Renewable Heat Premium Payment eligibility criteria?
- The main criteria are as follows:
- Applicants must be the owners of or reside in the property for which the grant is applied (alternatively applicants who have leasehold ownership or tenancy occupation must have permission from the property freeholder) and it must be their primary residence.
- For heating systems other than solar thermal, this must be the main heating system in the house.
- The installation address must be situated in England, Scotland or Wales (the scheme is not available to addresses in Northern Ireland, the Isle of Man and the Channel Islands) and must be the applicant primary residence or a property occupied for the majority of the year.
- Eligible technologies are Solar Thermal Hot Water, Air to water source Heat Pumps, Ground Source Heat Pumps, water to water heat pumps and biomass fuelled boilers (eg wood or wood pellet). Air to air heat pumps, wood fuelled stoves (unless they are part of a system with a back boiler) and bioliquid fuelled systems are not eligible for this scheme.
- Solar Thermal Hot Water systems will be available to all householders.
- For other technologies applicants must not currently use mains gas supply for their heating system.
- Applicants must use a Microgeneration Certification Scheme (MCS) certificated installer (www.microgenerationcertification.org) and product or equivalent.
- Renewable heating systems must supply a permanent residential building (mobile homes, caravans, house boats and systems heating swimming pools only are not eligible).
- Basic energy efficiency measures must have been installed at the installation address (loft insulation up to 250mm where appropriate, cavity wall insulation where practicable).
- Applicants must have received all relevant permissions for the installation including planning permission where required. If in doubt, please confirm with your local authority whether planning permission is required.
- Will I need to pay for any monitoring that is carried out?
- A significant proportion of applicants will be approached by Energy Saving Trust to have additional meters attached to their installation which will monitor the performance of the heating system. They will not have to pay for these or take readings themselves. Everyone has to agree to let a meter be installed as part of the terms and conditions of the scheme. For everyone else, any meters and controls which come with the product already will be sufficient. You will be asked through surveys information about these meters and the bills that you get; and in particular how easy it is to understand the meters and the controls, as well as general feedback on your satisfaction with the system installation and its performance.
- 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
- 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.
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