Renewable Heat Incentive – RHI
Owners of ground source heat pumps systems (and other eligible renewable heat technologies) installed since 15 July 2009 in non-domestic properties, can apply to Ofgem to be paid 8.7 pence/kWhour of renewable heat generated for the next 20 years.
Ground Source Heat Pump RHI tariffs Double
Installations from 21 January 2013 will benefit from the rate of 8.7 pence/kWhour announced on 4 December 2013. This follows on from extensive lobbying by the GSHPA.
DECC published its Early Tariff Review in May 2013 to announce a proposed doubling of GSHP tariffs on smaller installations and tripling of the RHI tariff on larger installations. This is designed to boost the GSHP market as the number of smaller GSHP commercial installations was only 1% of the number that DECC had anticipated and almost all of the RHI payments were being made to biomass boilers.
See the GSHPA's response to the DECC Consultation on Commercial RHI Tariff Review of May 2013.
Renewable Heat Incentive is received by owners of Non-Domestic buildings for 20 years, based on the metered heat delivered from ground source heat pumps.
From Spring 2014 owners of Domestic Properties will receive RHI for 7 years: there is no need to delay installations for owners of domestic properties, because the RHI will apply for all ground source heat pumps installed since 15 July 2009.
For domestic installations (and others up to 45 kW heating capacity) installations must use MCS approved equipment and must be installed by MCS approved installers.
Renewable Heat Premium Payment – RHPP
There is a further single payment grant of £2,300 called the RHPP which is only available to owners of domestic properties who are not currently using mains gas for heating. They can register with the Energy Savings Trust and receive £1,250 if they have a ground source heat pump installed and commissioned.
A ground source heat pump provides an excellent method for providing emission free heating and avoiding further rises in energy bills, as well as attracting RHI, but they must be installed by an experienced contractor if you are to achieve the potential benefits.
Please verify if your contractor is a member of the GSHP Association.