Renewable Heat Incentive

Anyone installing Solar Thermal Panels, Heat Pumps or Biomass Boilers could get paid hundreds of pounds a year. The new Renewable Heat Incentive (RHI) for householders should help promote the installation of renewable heat technologies in domestic properties with the aim of lowering the UK's carbon footprint and cutting energy bills.

Eligibility

The scheme is open to homeowners, private and social landlords, third party owners of heating systems and people who build their own homes. Anyone who has installed a renewable heat technology since 15 July 2009 and meets the scheme eligibility criteria will be able to join the scheme.

Eligible Technologies

RHI domestic will support air to water heat pumps; biomass only boilers and biomass pellet stoves with back boilers; ground and water source heat pumps; flat plate and evacuated tube solar thermal panels.

Tariff levels have now been set at:

7.3p /kWh for air source heat pumps
12.2p /kWh for biomass boilers
18.8p /kWh for ground source heat pumps
and at least 19.2p /kWh for solar thermal

Tariff Payments

Payments will be made on a quarterly basis for seven years. The tariffs have been set at a level that reflects the expected cost of renewable heat generation over 20 years. In most cases, payments will be made based on estimated heat demand of the property. DECC will offer an extra set payment of £230 per year where consumers take out metering and monitoring support packages for heat pumps and £200 for biomass boilers.

Scheme Requirements

Applicants will need to complete a Green Deal Assessment before submitting their application and must ensure they have met minimum loft (250mm) and cavity wall insulation requirements, where appropriate. All installations and installers must be MCS certified (or certified by an equivalent scheme). MCS certified installers are currently required to be members of the Renewable Energy Consumer Code, which is backed by the Trading Standards Institute.