Renewable Heat Initiative (RHI)
Currently around half of the UK’s carbon emissions come from the energy used to produce heat - more than from generating electricity. The Renewable Heat Initiative (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
Under the RHI UK government is making one-off payments for non-domestic, active now. and introducing a subsidy for domestic, in Summer 2013, to assist the transition to renewable heating
Elegibility: If you currently rely on oil, liquid gas, solid fuel or electricity then you can apply for the subsidy for air to water source heat pumps, ground - or water- source heat pumps, and biomass boilers
Homes on the gas-grid are not eligible for the RHI
A set of holiday cottages in East Yorkshire has become one of the first places in the UK to get a payment under the RHI, where a ground source heat pump will provide heat and hot water to the five holiday lets at Broadgate Farm Cottages in Beverley. Owner of Broadgate Farm Cottages, Elaine Robinson said:
“We don’t have mains gas and the price of oil and LPG is very expensive so when we decided to develop the holiday cottages a ground source heat pump was the most economically attractive in the long term, especially with the Renewable Heat Incentive"
The Broadgate Farm Cottages has installed a 4.3kW ground source heat pump which has been accredited under the Microgeneration Certification Scheme (MCS) with an efficiency above that required by the RHI. It supplies space heating and hot water. The heat output is measured by an appropriate heat meter. It has been accredited under the ‘small commercial heat pumps’ tariff of 4.5p / Kilowatt-hour (kWh) and will receive quarterly payments for a twenty year period
RHI payments are currently being made for non-domestic installations ie. business/commerce ..However, the government has now confirmed it will delay the full-scale domestic RHI from the scheduled launch in October 2012 until summer 2013. That means that instead of the RHI payment that is to be made based on the output from the installation, assistance continues to be as a one-off payment through the Renewable Heat Premium Payment scheme (RHPP), as a precursor to the full-scale domestic RHI in 2013
Still, good news for those looking to replace their oil-fired/LPG systems as the RHPP Phase 2 is running from this May and offers payments as in the table, depending on which technology you are applying for
The voucher values for each of the technologies are:
|Solar Thermal Hot Water||£600|
|Air to Water Source Heat Pump||£1300|
|Ground Source or Water Source Heat Pump||£2300|
The Renewable Heat Premium Payment scheme - Phase 2 will run from 1st May 2012 to 31st March 2013
Heat Pumps are eligible for RHI
Install renewable energy heating by replacing an existing oil boiler with a Ground Source Heat Pump or an Air Source Heat Pump and the installation is eligible for the Renewable Heat Incentive. Providing your Heat Pump installation took place after June 15th 2009 and you meet the eligibility criteria, you will be able to receive an annual grant for up to 20 years
What are Heat Pumps?
Heat Pumps use similar technology to your refrigerator except in reverse. They take low level heat from the ground or air and concentrate it into much higher temperatures to provide all the hot water and heat your home needs
Heat Pumps save money too
As well as receiving annual payments via the RHI, installing Heat Pumps mean you could reduce your heating bills by over 60% when compared to oil-burning heating systems. You also won’t need to worry about unreliable fuel deliveries, particularly in bad weather and can instead enjoy the benefits of a property heated by renewable energy all year round.
How much do Heat Pumps cost?
As you're already considering changing your oil boiler in most cases it won't cost a lot more. However, every home is different
Biomass boilers are eligible for RHI