31 July 2013
Self builders could get paid hundreds of pounds a year for heat generated by solar thermal panels, biomass boilers and heat pumps, through eligibility for the domestic renewable heat incentive (RHI).
The domestic RHI is the world’s first long-term financial support scheme for renewable heat, aiming to boost the uptake of renewable heat technologies to cut carbon, to meet renewables targets and to cut costs on energy bills. It is mainly targeted at, but not limited to, off-gas grid households.
{TEASER}
Tariff rates are calculated based on the costs of off-gas heating, usually more expensive than heating with mains gas. Gas users can switch to renewable technologies and claim the renewable heat incentive, but the rate of return will not be as significant.
Anyone who has installed a renewable heat technology since 15 July 2009 and meets the eligibility criteria will be able to join the scheme. The criteria includes completing a pre-application Green Deal Assessment, meeting minimum loft and cavity wall insulation requirements and using a certified installer and product.
Support will be paid at a set rate per unit of renewable heat produced (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 thermal), for a duration of seven years, to the owner of the heating system.
This announcement follows extensive consultation on how a financial incentive would work best for householders. Greg Barker, Minister of State, Department of Energy and Climate Change, said: “Investing for the long term in new renewable heat technologies will mean cleaner energy and cheaper bills. So this package of measures is a big step forward in our drive to get innovative renewable heating kit in our homes.”
Jackson Moulding, Vice Chair of the National Self Build Association said having a clear steer on the RHI levels helps both the renewables industry and self builders alike: “Installing renewables as part of an integrated design for a new home makes sense for the self builder as they will be responsible for the future energy costs of the home. Combining this with the payments through RHI make it more viable, and should be considered an essential component of the home.
“We look forward to the announcement of the date the RHI will start. Until then there is the Renewable Heat Premium Payment scheme.”
It is the intention to launch the domestic RHI in Spring 2014. It will be administered by Ofgem and pre-application enquiries should be directed to the Energy Saving Advice Service on 0300 123 1234. More details can be found on the Ofgem website and in the Domestic RHI Policy Statement.
