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RHI Policy Details Confirmed

RHI Policy Details Confirmed

Published on 13/07/2013

The policy details for the domestic Renewable Heat Incentive (RHI) have finally been announced by the UK Government today.

The renewable heat incentive is designed to reward UK home owners for generating heat from renewable sources.  This breakthrough scheme is set to start in Spring 2014 and will see massive payments made to homeowners and landlords.  We expect payments in excess of £11,000 in the first 7 years for fitting an air source heat pump (standard 4 bed home, excluding energy savings).  Biomass systems promise an even more generous set of payments amounting to more than £27,000 for a similar home!

The headline information is as follows:-
  • Air source heat pumps – 7.3p/kWh – Output based on EPC coupled with distribution system efficiency
  • Ground Source Heat Pumps – 18.8p/kWh – Output based on EPC coupled with distribution system efficiency
  • Biomass – 12.2p/kWh – Output based on EPC
  • Solar Thermal – 19.2p/kWh – Output based on installer forecast (MCS certificate)
  • The scheme is open to homeowners, landlords, Social Housing providers, self-builders and third party system owners.
  • Assuming the eligibility criteria is met the scheme will be open to any installation installed from since 15th July 2009.
  • The incentive will be paid at a set rate per unit of renewable heat produced (kilowatt hour or kWh), for seven years, to the owner of the heating system
  • £230 and £200 annual bonus for heat pumps and biomass boilers with heat meters respectively.
  • Microgeneration Certification Scheme (MCS) scheme approval required.
  • Green Deal Assessment (GDA) required to ensure minimum energy efficiency requirements of loft and cavity insulation are met.
  • Tariffs linked to the Retail Price Index (RPI)
  • Tariff to reduce to new entrants as uptake increases – first come first served (detailed expected in Autumn).

For more information about the criteria of the scheme, you should visit the UK Government website.

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