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Renewable Heat Premium Payments announcement

posted by Ruth Wharton on 21 July 2011

tags: Green Deal , renewable energy ,

Solar hot water panel on roof

Today sees the announcement of the Renewable Heat Premium Payments (RHPP).

Starting in August 2011, domestic renewable heat installations will be eligible to receive a one off payment. The RHPP will be run by the Energy Saving Trust and the following amounts will be available:

  • Solar thermal - £300 per unit
  • Air source heat pumps - £850 per unit
  • Biomass boilers - £950 per unit
  • Ground source heat pumps - £1,250 per unit

Solar thermal is the only technology which will be available to all properties, regardless of fuel type, whilst heat pumps and biomass boiler payments will only be available to those properties that are off the gas grid.

In order to be eligible to receive a payment you must ensure your property is well insulated and ensure the system is installed by an MCS certificated installing company. As the recipient of the RHPP you will be expected to give feedback on how your equipment performs.

£15 million has been allocated to the RHPP with the intention of supporting up to 25,000 domestic installations. Payments will be allocated on a first come first serve basis and the scheme will close on 31st March 2012, unless the money runs out before this date.

In October 2012 anyone who has received an RHPP will be able to obtain long term RHI tariff support, as will anybody who has installed an eligible technology since 15th July 2009. Domestic Renewable Heat Incentive (RHI) tariffs will be introduced alongside the government's Green Deal to allow for a whole house approach to heat production and energy saving.

Whilst air source heat pump installations will be eligible for an RHPP, a decision on whether or not they'll be included in the tariff payments will be based upon consumer feedback on the performance of the technologies.

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