Launch of domestic Renewable Heat Incentive scheme confirmed with Tariffs announcement.


After a long wait the government has finally committed to long term support for renewable heat installations in homes,
announcing the tariff levels for the domestic version of the Renewable Heat
Incentive (RHI) scheme that will take over from the current voucher system when
it ends in March 2014.
There had been doubts
within the renewables sector that the much-vaunted scheme, claimed as a world
first, might never happen. However the Department of Energy and Climate Change has confirmed that payments will be paid to qualifying
householders and landlords for seven years.
DECC has set tariff
levels at 7.3p/kWh for air source heat pumps; 12.2p/kWh for biomass boilers;
18.8p/kWh for ground source heat pumps and at least 19.2 p/kWh for solar

Earlier this year, the value of vouchers available under the Renewable Heat Premium
Payment (RHPP) scheme, which had its life extended until next March to cover
delays in the launch of the RHI and to prevent a hiatus in renewable heat
installations. The RHPP targets homes that are off the gas supply grid.
The non-domestic version
of RHI has been running since November 2011 and is to be expanded, with details
of changes and a tariff review due in the Autumn, according to DECC.
As with the revamped
RHPP scheme, the RHI will be tied in to the government’s Green Deal, with RHI
applicants having to complete a Green Deal assessment and meet minimum loft and
cavity wall insulation requirements to qualify. Anyone who has installed
qualifying renewable heat technology since July 2009 will be able to join the
RHI scheme, although there will be measures to prevent double subsidies.
with the Feed-in-tariffs to incentivise solar panels, the grants will be reduced
over the ensuing years deliberately to incentivise and reward early investors –
‘the early bird will catch the worm’.  Those who
have already secured their tariff will not have their tariff reduced due to
cost control. DECC will announce further details on the cost control policy in
Autumn 2013
The RHI scheme for
householders will be run by Ofgem, with final details of the application
process still to be published. In the meantime, pre-application enquiries can
be made to the Energy Saving Advice Service on 0300 123 1234.