RENEWABLE HEAT INCENTIVES

The Department of Energy and Climate Change published recently updated plans for an incentive scheme for renewable heat generation at all scales - the Renewable Heat Incentive (RHI).

 

For Business Users, this will come into effect in July 2011 and guarantee payments for those who install technologies such as solar thermal, biomass boilers and ground source heat pumps. Proposed tariff levels are:-

 

Ground source heat pumps	Up to 10OkW	4.3p/kWhr	20 year tariff lifetime
Ground source heat pumps	10OkW and above	3.0p/kWhr	20 year tariff lifetime
Solar thermal	Upto200kW	8.5p/kWhr	20 year tariff lifetime

 

For Domestic Users, Phase 2 of the Renewable Heat Incentive will be introduced in Autumn 2012. To cover the 1 interim period, £15 million has been set aside from which a Renewable Heat Incentive Premium payment will be 1 available (after 29th July, it is understood). Details are not yet finalised, but the proposed payments are:-

 

Air source heat pumps	£ 800
Ground source heat pumps	£1250
Solar thermal	£ 300

 

It is understood that systems installed from 15th July 2009 will be able to join the Renewable Heat Incentive scheme, but will only get paid for any generation from July 2011 (business) / Autumn 2012 (domestic) onwards.