July 2013 Domestic Renewable Heat incentive (RHI) Update

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Domestic RHI "Renewable Heat Incentive" Scheme - Coming Spring 2014

It was announced on the 12th July, 2013 by DECC that households installing renewable heat technologies will from next year be eligible for hundreds of pounds a year in incentive payments.

The scheme is now expected to launch next Spring with a final date to be confirmed once the plan has gained Parliamentary and state aid approval. But, significantly any eligible renewable heat technology installed since 15 July 2009, when the scheme was first announced, will be able to access the incentives, meaning there is no reason for interested households to delay installing the technology.

Under the scheme, payments will be made on a quarterly basis for 7 years with most payments being calculated using estimates of heat output . However, an extra set payment of £230 a year is available for households with heat pumps that also install a heat metering system.

The Government has also moved to ensure it is not incentivising heat generation in in-efficient homes, with the introduction of rule requiring those applying for the RHI to have completed a Green Deal Assessment to ensure that the properties meet minimum insulation standards.

The Domestic RHI will replace the existing Renewable Heat Premium Payment (RHPP) scheme which offers grants to help cover some of the cost of renewable heat technologies. Those households that have already taken advantage of the RHPP grants can apply for the RHI support, but the value of the grant will be deducted from RHI payments to avoid the risk of a double subsidy.

Scheme at a glance:

  • Tariff rates for Air Source Heat Pumps - 7.3p/kWh
  • Tariffs payable over 7 years
  • Extra £230 per year for heat pump systems with monitoring/metering equipment
  • Scheme due to commence Spring 2014
  • RHI NOT AVAILABLE FOR NEWBUILD PROPERTIES

Example:

Estimated Heat Use:  15,000 kWh

Tariff: 7.3 p/kWh

Total annual RHI entitlement = tariff kWh x renewable heat:  £1,095

 

Energy Saving Trust Link: http://www.energysavingtrust.org.uk/Generating-energy/Getting-money-back/Renewable-Heat-Incentive-RHI