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Domestic RHI Tariff Levels Announced

The long anticipated framework for the domestic RHI has been announced today. The policy statement ‘Renewable Heat Incentive: The first step to transforming the way we heat our homes’ is now available on the GOV.UK website, and was followed by a statement from the Energy and Climate change Minister Greg Barker, who has said the following:

“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.

“Householders can now invest in a range of exciting heating technologies knowing how much the tariff will be for different renewable heat technologies and benefit from the clean green heat produced. We are also sending a clear signal to industry that the Coalition is 110 percent committed to boosting and sustaining growth in this sector.”

Eligible RHI technologies are air to water heat pumps; biomass only boilers; biomass pellet stoves with back burners; ground and water source heat pumps; flat plate and evacuated tube solar thermal panels. Renewable Heat Incentive payments are to be made for seven years, and will be paid quarterly. As with the Renewable Heat Premium Payment (see below), applicants will need to undertake a green deal assessment before applying.

Technology

Tariff Level

Air source Heat Pumps

7.3p/kWh

Biomass Boilers

12.2p/kWh

Ground Source Heat Pumps

18.8p/kWh

Solar Thermal

19.2p/kWh

 

The domestic RHI will be introduced by the DECC in Spring 2014, and will be available to homeowners, private and social landlords, third party owners of heating systems, and people who build their own homes. It will also be available to those who have installed a renewable heat technology since 15 July 2009, and meet the scheme’s eligibility criteria.

Upfront costs of installing a renewable heat technology can also be supplemented with the help of a Renewable Heat Premium Payment – see our article ‘Renewable Heat Premium Payment on the Rise’, although the amount of the RHPP will be deducted from any future RHI payments.