Renewable Heat Incentive

The Renewable Heat Incentive will assist homeowners with the initial financial outlay of installing renewable technology which produces heat including heat pumps, biomass and solar hot water systems. An overview of the incentive and how it will be introduced in two phases is highlighted below.

Phase 1- Renewable Heat Premium Payments

From July 2011 up to 25,000 homeowners will be able to take advantage of £15million which will be dedicated for the Renewable Heat Premium Payments. This will be a one off payment which the homeowner will be able to use to assist with financing the installation of the renewable technology.

However, in order to qualify for the payment the properties energy efficiency will firstly be assessed. It is proposed this will be done by viewing the properties energy performance certificate, ensuring the property is fully insulated along with other criteria.

In addition, all homeowners who receive the Renewable Heat Premium Payments will also be required to agree that their technology will be monitored enabling a better understanding of the different technologies.

Phase 2- Renewable Heat Incentive Tariffs

This tariff will be introduced in 2012 at the same time as the Governments Green Deal and will replace the Renewable Heat Premium Payments.

The Renewable Heat Tariff will pay homeowners for each kWh of heat which is produced by the renewable technology.

Homeowners who installed an eligible technology that generates renewable heat after July 2009 will be eligible for this reward scheme, regardless of whether you also received a Renewable Heat Premium Payment.

The tariff will only by available to those homeowners whose renewable technology was installed by a tradesman who is accredited with the Government's Microgeneration Certification Scheme (MCS).

Please find below a proposed outline of the tariff. Please note, this is subject to change until May 2011.

Source: DECC

The following systems will be entitled to receive the Renewable Heat Incentive Tariff and Renewable Heat Premium Payments:

Finalised details of the Renewable Heat Incentive will be available from May 2011. If you would like to benefit from launch date install renewable technology today! Contact us today to find out more information and to arrange a free, no obligation quote.