Government launches domestic RHI

The domestic Renewable Heat Incentive (RHI) has been launched by the Government, offering homeowners payments to offset the cost of installing low carbon systems in their properties.

The incentive will pay people the green heat they generate for their homes. The financial support scheme is open to homeowners, social and private landlords, and people who build their own houses.

The technologies covered by the scheme include biomass heating systems, ground or water source heat pumps, air to water heat pumps and solar thermal panels.

Minister for Energy, Greg Barker, said: “This is the first scheme of its kind in the world – showing yet again that the UK is leading the way in the clean energy sector.”

“Not only will people have warmer homes and cheaper fuel bills, they will reduce their carbon emissions, and will also get cash payments for installing these new technologies.

“It opens up a market for the supply chain, engineers and installers – generating growth and supporting jobs as part of our long-term economic plan.”

Only one space heating system is allowed per property but homeowners can apply for solar thermal for hot water and a space heating system.

The guaranteed payments are made quarterly over seven years for households in England, Wales and Scotland.

Industry figures have been quick to back the scheme, including Plumb Center’s renewables director Simon Allan, who believes the RHI will benefit installers.

“The launch is great news for the renewables market and we’re sure the government’s announcement will give renewed confidence to installers,” said Allan.

“We understand installers are busy people so we’ve left no stone unturned to provide the training, products and support they’ll need to get ahead of their competitors.”

The tariffs have been set at:

· 7.3p/kWh for air source heat pumps

· 12.2p/kWh for biomass boilers

· 18.8p/kWh for ground source heat pumps

· 19.2 p/kWh for solar thermal