The Renewable Heat Incentive

On 10 March 2011, the Government announced the details of the Renewable Heat Incentive policy to revolutionise the way heat is generated and used. This is the first financial support scheme for renewable heat of its kind in the world.

At a time when we can all see many problems with relying on a rapidly changing world and continuous reliance on imported oil and gas, the government have put in place a key foundation stone of the UK's energy future where both carbon reduction and energy security are assured. The Renewable Heat Incentive(RHI) policy document, sets out the detailed arrangements for this scheme, which will provide long-term financial support to renewable heat installations to encourage the uptake of renewable heat.

RHI Scheme Details

The Renewable Heat Incentive will be rolled out in 2 phases across the UK. Phase one is aimed at Non Domestic big heat users. Business and commercial properties will be able to install a range of renewable technologies and apply for teh RHI. Also covered in phase one is the Renewable Heat Premium Payment scheme which will offer one off payments to help homeowners with the cost of installing renewable technologies.

Phase 2

The second phase of the RHI scheme will see it expanded to include more technologies as well as support for households. In light of the later than expected launch of Phase 1, as a result of changes required by the European Commission, we are reviewing the timetable for introducing Phase 2. We will be able to confirm the exact timing early in the New Year.

Renewable Heat Premium Payments (RHPP)

What is it all about?

The Renewable Heat Premium Payment voucher scheme is a government scheme that gives money to householders to help them buy renewable heating technologies – solar thermal panels, heat pumps and biomass boilers. This is a short-term scheme making one-off payments that will also allow us to learn more about what people think of these technologies and how they perform in a variety of conditions

Who can apply?

For ground to water, air to water or water to water heat pumps, and for biomass boilers, householders without gas central heating in England, Scotland and Wales can apply (in other words those who are not connected to the gas grid and currently rely on fuels such as oil, liquid gas, solid fuel or electricity for their heating). All successful applicants will have to meet certain simple conditions.

What are the conditions?

3Your house must be your main home and it must have basic energy efficiency measures in place. This means you will need to confirm you have loft insulation to 250mm and cavity wall insulation, where these measures are practical. The renewable heat product you will be installing must be listed under the Microgeneration Certification Scheme, and be installed by someone registered under the scheme, or equivalent. Visit the MCS website [External link]for details. You must agree to having an extra meter attached to your installation (free of charge) as we are keen to monitor and learn about how heating systems are used in practice in various different circumstances and types of home. Once the equipment is up and running, you will also be asked to fill in two customer questionnaires, one immediately after installation and one after a follow-up period.

How much are these grants worth?

All Houses	Houses not heated by gas from the grid
£300 – solar thermal – voucher valid for 3 months	£950 – biomass boiler – voucher valid for 6 months
	£850 – air source heat pump – voucher valid for 5 months
	£1250 – ground source or water source heat pump – voucher valid for 6 months

For more information on the renewable heat incentive, the premium payment or any other aspect of a renewable heating solution please contact us.