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

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.
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.
Can I install the heating system before applying for a Renewable Heat Premium Payment voucher?
You can, but at your own risk. Installations made from the announcement of full details of the scheme on 21st July 2011, but before the application for the voucher, will be eligible, including installations made between 21st July and 1st August 2011. If you as a householder do commission or carry out an installation before receiving a voucher, please make sure that you have read the terms and conditions of the scheme carefully. The Government or Energy Saving Trust, who administer the scheme, will not be liable for any costs in relation to decisions you have taken on this basis.
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.
If I make a successful application to the scheme and receive a Renewable Heat Premium Payment voucher, how long is it valid for?
This depends on the technology you have applied for. The voucher validity periods for each of the technologies are listed below.
  • Solar Thermal Hot Water - 3 months
  • Air Source Heat Pump - 5 months
  • Ground Source Heat Pump - 6 months
  • Biomass boiler - 6 months
The date on the voucher refers to the date that the valid claim is received by the Energy Saving Trust. In any case, no voucher will be valid beyond 31st March 2012 and no extensions will be given. The completed voucher claim together with the invoice and the Microgeneration Certification Scheme certificate should be sent to the address indicated on the voucher. It is recommended that this is sent by recorded delivery.
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