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 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.
- 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.
- 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.
- 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.
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