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 do I apply for a Renewable Heat Premium Payment?
- The scheme opened to applications on 1st August 2011. You can apply online by going to the Energy Saving Trust website (www.energysavingtrust.org.uk/RHPP). Your should ensure that you meet the eligibility criteria. It is very important that those with vouchers check they have met all the conditions on that voucher, as claims may not be paid if the scheme terms and conditions and the terms on the voucher have not been met. Receiving a voucher is not sufficient evidence that you are entitled to a grant.
- 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.
- 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.
- 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 happens if I am very disappointed with the performance of my chosen technologies or it fails to work? Do I have to return the grant if I remove the system say after 4 months?
- Yes, If you get a refund from the installer, you have to return the grant. Contact the Energy Saving Trust for details of how to do this.
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