The Department of Energy and Climate Change announced the launch of the Renewable Heat Incentive (RHI) on the 9th of April 2014. This will allow significant financial support to be available for all eligible GSHPs installed after the 15 July 2009, radically reducing the time it takes to recover your initial capital investment. Systems installed using accredited equipment after 15th July 2009 will be eligible to join the Renewable Heat Incentive (RHI) scheme. This scheme will be available to households, business, local authorities, industrial premises and social housing.
We are delighted to bring you the exciting news that the Energy Minister Greg Barker has confirmed the Domestic Renewable Heat Incentive has been signed into law and has now been launched!
Following extensive industry input, the Department for Energy and Climate Change (DECC) published its long awaited consultation for the Renewable Heat Incentive (RHI) Phase 2 for Domestic properties. The proposal suggests quarterly payments to be made to homeowners over a 7 year period for each kWh of the expected lifetime of the renewable technology, based on deemed heat usage. Targeting approximately a rate of return of 12% p.a. on the additional capital cost of installing GSHP. RHI payments will be claimed by and paid directly to the owner of the equipment based on a deemed or standard calculation basis for small to medium installations. Large installations are likely to be assessed on an individual case basis. To find out more about this publication from the DECC please click here.
Installers and equipment used must be certified under the Microgeneration Certification Scheme (MCS). Payments will be calculated on the deemed annual heat output, in kilowatt hours, that your GSHP would normally provide. This will allow the homeowner to receive a set amount and should encourage low energy consumption whilst discouraging wasteful over production of heat.
Ground source heat pumps have a tariff set at 18.8p/kWh. The tariff has been set at a level that reflects the expected cost of renewable heat generation over 7 years for domestic properties and 20 years for commercial properties. Payments will be made on a quarterly basis. This tariff will take into account inflation and will reduce each year for new projects added to the scheme depending on demand.
All of the information included is based on the original consultation document published in February 2010 and is subject to change.
Like to know more? Contact us now and we can explain the RHI and how it might apply to your proposed project.