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.
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.
Can I apply for more than one technology?
Yes, although you must complete a separate application form for each technology. You cannot apply twice for the same technology at the same installation address.
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.
Are air to air heat pumps eligible?
No
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