If you or your client are replacing your existing oil or LPG boiler and are considering replacing this with a GSHP, please click the link below.
Details of the Renewable Heat Incentive Scheme can be found in full below. This section of the Kensa Website will be updated regularly so bookmark this webpage to read details of recent news relating to all aspects of the Renewable Heat Incentive.
For a generic overview of the Renewable Heat Incentive Scheme, please see below. Alternatively, for details of tariffs relating to specific project sectors, please choose from one of the below options. For eligibility criteria for the £1250 voucher (RHPP), click on the RHI Premium Payment button below.
Renewable Heat Incentive - A Generic Overview of the Scheme
- £860m government scheme expected to increase green capital investment by £4.5 billion up to 2020, stimulating a new market in renewable heat;
- Incentive to increase number of industrial, commercial and public sector installations by seven times to 2020
- A full system of RHI payments will be available to households in 2013.
- In the interim, more than a quarter of the first year’s budget to be guaranteed for up to 25,000 household installations through a “RHI Premium Payment” to encourage take-up;
- 150,000 existing manufacturing, supply chain and installer jobs to be supported
There are significant changes from the details proposed in the original consultation documents released in April last year. The scheme will be introduced in two phases.
In the first phase, long-term tariff support will be targeted in the non-domestic sectors, at the big heat users - the industrial, business and public sector – which contribute 38% of the UK’s carbon emissions. The tariffs for these supported commercial sectors have been set at 4.5p kW/h for ground source heat pumps. To find out more about this Phase of funding, what the elidgibility criteria is and how to apply, visit the Commercial RHI Page.
During phase one, there will also be support of around £15 million for existing domestic households, through the Renewable Heat Premium Payment. The Renewable Heat Premium Payment (RHPP) has provided support to the domestic sector since August 2011 due to the later than anticipated household scheme under RHI.
A second phase of this scheme, worth £25m (£10m more than the first phase), to provide support for the installation of renewable heat technologies in the household sector was also announced. The support will consist of a new voucher scheme for domestic households and a new social landlords’ competition building on the experiences of Phase 1 of the RHPP.
The second phase also includes a new £8m Communities Competition which will help to bring renewable heat to a wider pool of householders. Potential applicants for the voucher scheme will be able to pre-register with the Energy Saving Trust.
The second phase of the RHI scheme will see households moved to the same format of long-term support offered to the non-domestic sector in the first phase, although the tariffs are likely to be higher. Further detail about the domestic tariffs are expected in Summer 2013.
Key aspects of the RHI from 2012
- Support for a range of technologies and fuel uses including solid and gaseous biomass, solar thermal, ground and water source heat-pumps and more.
- Support for industrial and the commercial sector; the public sector; not-for-profit organisations and communities in England, Scotland and Wales through the RHI tariffs
- Support for households carrying out retrofit projects, through the Renewable Heat Premium Payment in the first year of the scheme until the Green Deal is introduced in October when households will become eligible for RHI tariffs
- The RHI will be funded from general Government spending, not through the previously proposed RHI levy
- At the start of the scheme only non-domestic sectors will be supported.
- The Renewable Heat Incentive (RHI) will support emerging technologies and businesses in the UK, strengthening security of supply by reducing dependence on fossil fuel heating and emissions.
- Currently around half of the UK’s carbon emissions come from the energy used to produce heat – more than from generating electricity. The RHI will reduce emissions by 44 million tonnes of carbon to 2020, equivalent to the annual carbon emitted by 20 typical new gas power stations .
- Over 95% of heat in the UK is currently produced by burning fossil fuel but with North Sea supplies now in decline leading to an increase in imports, low carbon alternatives are needed.
- The new financial incentive will encourage installation of equipment like renewable heat pumps, biomass boilers and solar thermal panels to reduce emissions and support the existing 150,000 jobs in the heating industry.
To understand how the Renewable Heat Incentive can benefit you and your project, please choose from one of the two different project types below:-
