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

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.
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.
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
I received a grant under the Low Carbon Buildings Programme/Clear Skies Programme, can I apply for a voucher for a new different installation under this scheme?
Yes, although in these cases you cannot apply for funding for your existing installation and the new system must be used instead of an existing fossil fuel or electric heating system.
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