The Renewable Heat Incentive (RHI) provides support for heat pumps and renewable energy underpinning the work which we had done by providing evidence that these systems are viable, and in turn we can now show our customer that there is an incentive to install these systems.
The Renewable Heat Incentive (RHI) is a financial support scheme for renewable heat. The scheme is intended for domestic applications and is administered by the energy regulator Ofgem with the purpose of supporting and rewarding households who move away from fossil fuels for heating their homes.
Owners of heat pumps will be paid on each kilowatt hour (kWh) of renewable heat their installation generates, for seven years tax-free.
WHAT ARE THE PAYMENT LEVELS UNDER THE RENEWABLE HEAT INCENTIVE (RHI)?
The amount of money you can receive under the Renewable Heat Incentive will be dependent on a number of factors including:
Renewable technology installed (ground source heat pumps, air source heat pumps, solar thermal)
Deemed heat load (the amount of heat likely to be generated by the renewable energy heating system)
Participants will receive RHI payments quarterly in arrears for seven years. Tariffs will change annually in line with the Retail Price Index (RPI). If you have previously received public funding for your heat pump system, such as the Renewable Heat Premium Payment, this must be declared as part of the application process. This will then be deducted from RHI payments under the scheme. Initially, a deduction equal to one twenty-eighth of the value of the prior public funding received will be made from each quarterly payment.
WHO IS ELIGIBLE TO RECEIVE THE RENEWABLE HEAT INCENTIVE (RHI)?
The domestic RHI scheme will give financial support for an eligible renewable heating system that heats a single domestic property in Great Britain. The property can be on or off the gas grid. Payments will go to the owner of the system. The following groups will be eligible to apply for the domestic RHI (and all receive the same tariff):
Registered social landlords
Third party owners of a heating system
Self-builders are defined as those who have built or commissioned a home for their own use, either by building the home on their own or working with builders. Second homes are also eligible for the RHI. Self-builders are defined as those who have built or commissioned a home for their own use, either by building the home on their own or working with builders. Second homes are also eligible for the RHI.
New build systems will not be eligible for the scheme. This means properties in which the renewable heating system was installed before it was inhabited for the first time. This includes applications from house builders and housing developers, as well as anyone who owns a new build property, including legacy applicants. The only exception is self-build homes (see above definition).
The renewable heat installation must be certified under the Microgeneration Certification Scheme (MCS). The installation will need to meet the MCS standards that applied at the time of installation, rather than the current standards. All systems installed between 15th July 2009 and the launch of the RHI will be eligible provided they meet all the other criteria (referred to as "legacy applications").
OTHER ELIGIBILITY REQUIREMENTS OF THE RENEWABLE HEAT INCENTIVE (RHI)
Before applying for RHI support, all applicants including legacy applicants will need to ensure that:
Loft insulation (to 250mm) and cavity wall insulation have been installed where the measures are recommended by the GDA.
Where the GDA shows the required loft and cavity wall insulation is yet to be installed, an updated Energy Performance Certificate (EPC) is obtained following installation, as proof of installation (or valid evidence is provided proving why installation was not feasible)
The only exception is for self-builders who have built their property to current building regulations who will simply need to submit an EPC. All applicants must agree that they are willing to take part in a metering scheme if their property is chosen by DECC as a property to be metered. .
TO FIND OUT WHAT THIS COULD MEAN FOR YOU AND YOUR HOME EMAIL US ON INFO@HEACOL.CO.UK OR CALL US ON 01229 587894