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Householders could earn hundreds on renewable heating

Government announces tariffs to be paid

Solar thermal heating

British householders could earn hundreds of pounds each year for using renewable heating in their homes under the Renewable Heat Incentive (RHI), the government confirmed today.

The Department of Energy and Climate Change (DECC) has announced the tariffs that will be paid to householders under the RHI from spring 2014. 

The scheme was set up in 2011 to encourage the installation of renewable heat technologies and is now being rolled out to the domestic market. See our guide to find out more about the Renewable Heat Incentive.

Payments on renewable heating

The announcement from DECC today has confirmed that customers can get money back on heat generated from a number of renewable heating technologies. 

The tariff levels agreed will give participants at least 19.2p/kWh for solar thermal, 7.3p/kWh for air source heat pumps, 12.2p/kWh for biomass boilers and 18.8p/kWh for ground source heat pumps.

Payments would be made quarterly over a period of seven years, with an additional £230 a year available to those who take metering and monitoring support packages on heat pumps and £200 for biomass boilers. 

In addition to RHI payments, householders can get money-off vouchers to help them cover the initial installation costs through the Renewable Heat Premium Payment Scheme.

Energy and climate change minister, Greg Barker, 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.

‘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.’

Eligibility for the scheme

RHI payments will be available to anyone who has had a renewable heat technology installed in their home since 15 July 2009 and meets the necessary requirements, as well as those who install it in future.

Technologies covered by the scheme are solar thermal, ground and water source heat pumps, biomass boilers and air to water heat pumps.

All applicants will be required to undertake a Green Deal assessment before they can be approved and must have met minimum loft (250mm) and cavity wall insulation requirements. The Green Deal can allow you to install renewable heating at no upfront cost. 

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