Who will get paid by the RHI and by how much?

EPC - small changes

Are you confused by the Govenment’s Renewable Heat Incentive (RHI)? You’re not alone.

The RHI scheme will begin for the domestic market in 2013 and will pay homeowners a tariff, similar to the Feed-in-Tariff (FiT), for installing renewable technologies like solar thermal technologies, air source heat pumps and ground source heat pumps.

It is likely that any of these heating methods installed since 2009 will be eligible for the RHI provided they satisfy the installation criteria.

The UK Government published their consultation on domestic RHI in September 2012. The key proposals in the consultation are:

  • Indicative tariff ranges for air source heat pumps (6.9-11.5p/kWh), biomass boilers (5.2-8.7p/kWh), ground source heat pumps (12.5-17.3p/kWh) and solar thermal technologies (17.3p/kWh) that are MCS certified and meet relevant required standards, including specific emission limits for biomass systems.
  • Payments for householders over seven years for each kWh of heat produced for the expected lifetime of the renewable technology and based on deemed heat usage.
  • Tariff levels set to provide a better return for householders living off the gas grid.

The UK government has also confirmed that people who have installed equipment under RHPP 1 or 2 (which offers people up to £1250 towards the cost of installation) will be eligible for support through the RHI providing they meet the eligibility criteria of the full RHI scheme. In addition, the UK government are proposing that consumers who installed a renewable heat installation since 15 July 2009 will be eligible to apply for the domestic RHI.

This means that anyone installing these technologies now will be able to claim up to £1,250 towards the cost of installation and then receive the RHI payments next year for 20 years, AND they will be reducing their heating bill considerably.