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.
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 planning permission for my installation or to notify my Local Authority?
Most installations are now classed as permitted development which means planning permission is not needed, but this will depend on the technology you are installing and where you live. Please check with your Local Authority before proceeding to ensure you have all of the correct permissions required and see further information on Planning Permission.
I am proposing to install a new biomass boiler system/heat pump which will serve lots of houses. Can I apply for RHPP?
No, because such systems are eligible under Phase I of the main RHI you should apply under that.
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