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The financial incentives for 'heat generating' renewable systems are the Renewable Heat Premium Payment (RHPP) for domestic systems and Renewable Heat Incentive (RHI) for commerciial systems.
Domestic systems are currently paid RHPP (which is basically a 'grant') as follows:
- Solar thermal hot water panels - £600 grant (available to all households regardless of the type of heating system
- Biomass boiler - £2,000 grant (for homes without mains gas heating)
- Air source heat pump - £1,300 grant (for homes without mains gas heating);
- Ground Source Heat Pump - £2,300 grant (for homes without mains gas heating)
These incentives were doubled in many cases on 20th May 2013, so are much more attractive than before. Alongside changes to the voucher values, householders will now be required to undertake a Green Deal assessment before submitting a claim to the Energy Saving Trust to redeem their voucher. You can apply and have the system installed before that but must have the assessment before claiming RHPP. The RHPP is set to run until March 2014.
The RHI currently pays at the rates shown below for commercial and public buildings. This will run for 20 years, are tax free and index linked with tariffs applicable to our customers of:
| RHI non-domestic |
Scale |
RHI tariffs
pence/kWh |
Tariff lifetime
in years |
| Ground source heat pumps |
up to 100 kW |
4.7 |
20 |
| Solar thermal |
up to 200 kW |
8.9 |
20 |
| Solid biomass |
up to 200 kW |
8.3> |
20 |
You can see further details on the Government site HERE. Also useful is the OFGEM FAQ.
From summer 2014 the Domestic RHI is due to start under which air source heat pumps, biomass boilers, ground source heat pumps and solar thermal systems will receive payments for their green heat generated. Any consumer who replaces their current heating, or who has installed any eligible technology since the 15th July 2009, will be eligible for Domestic RHI. Recipients of RHPP payments will be eligible but will may have to pay back any RHPP they may have received.
Installations must be MCS certified and meet all the required standards. Consumers must also have installed measures identified with a green tick in their Green Deal assessment. Tariffs would be paid over a 7 year period on the basis of 'deemed' heat output with calculations made by a qualified professional.
Proposed tariff level (p/kWh)
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Air-source heat pump
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6.9 - 11.5 |
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Biomass boiler
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5.1 - 8.7 |
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Ground-source heat pump
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12.5 - 17.3 |
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Solar heating
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17.3 |
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What this would mean for a typical 4 person household with solar hot water heating would be a total payment of £2,200-£2,600 depending on whether the displaced fuel is gas or oil; or about half the cost of the solar system spread over 7 years.
For an air source heat pump in a typical 3 bed house with a 25,000kWh heat demand, the annual payment would be £1,725 which over 7 would total £12,075 which is much more than the installation cost.
For further details or to apply for RHI please phone the helpline on 084500 2122 or see the EST Website.
A good web site for details of RHI can be accessed by clicking HERE.
GREEN DEAL
There is currently a lot of interest in the Green Deal, which could include the cost of renewables, bundled in with other measures such as loft insulation or cavity wall fill. For further details of the scheme and how to get a Green Deal Assessment please click here.
In either case to receive these payments the installation must be by an MCS approved installer, which of course 1 World Solar have achieved with ELECSA.
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