The renewable heat incentive which is the first of its kind in the world, will give people as it says an ‘incentive’ to install renewable heat systems. These can be solar thermal technologies,  heat pumps and biomass boilers. There will also be support of around £15 million for households through the RHI Premium Payment from may 2012. This means you will be able to get a lump some to help you pay for the system(£300-£1250 depending on the technology). In return for the payments, homes installed will have to give feedback on how the equipment performs over time.Fact: From August 2011 up to 25,000 installations will be part funded by a ‘RHI Premium Payment’ to help cover the cost of your purchase.

Eligibility for the payments are:

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  • A fair spread of technologies across all regions of Great Britain.
  • A well insulated home based on its Energy Performance Certificate.
  • A focus on properties off the gas grid.
  • Agreement from the tenant to monitor the performance.

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RHI payments (like the feed in tariff) will start for homes alongside the Green Deal in 2013 to allow for a more whole-house approach to saving energy and renewable products for the home. The Department for Energy and Climate Change will bring out more information on these payments and tariff this year. These are not to be mixed up the RHI Premium Payment that will give you a lump some towards the buying and installing the technology. The RHI will pay you every year for 20 years for using this technology the same as the now adjusted feed in tariff.

All the people that have had the ‘RHI Premium Payment’ will be eligible for the RHI tariffs along with anyone else who has had these technologies installed since July 2009. Yes this means it can be back dated for people who have had it fitted before the start of the RHI.

This scheme is much like the feed in tariff but there are differences:

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  • It will be paid for by the Treasury not by energy users.
  • There is no importing and exporting, you will be paid in what your system produces that you use in your home or business.
  • It will be introduced in phases, with residential schemes not eligible until Phase 2 around summer 2013.

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After you have this technology installed you get paid on a fixed amount and this is based on that output of the technology you install. This takes into account the system size and what energy it should produce, and the tariff is paid for 20 years.

If you would like to find out more about the RHI and solar thermal, please get in touch. If you decide to have a system installed we can do all the relevant RHI paperwork for you.

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