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Today the Government has announced the launch of the Renewable Heat Incentive for domestic properties and given the details of how to apply for it.

The scheme is open for applications from today 9 April 2014.

You should be eligible if you have installed a qualifying Heat Pump, Biomass or Solar Thermal heating system since 15 July 2009, or if you are installing one now or planning to do so in the near future.

What do you have to do now?

The Government has tried to make the application process as simple as possible for most applicants.
If you:

  • Have a system installed since 15 July 2009 in your main home
  • Have your MCS certificate
  • Have a Green Deal Assessment indicating that your loft or roof insulation and your wall insulation meet the required standards (or that your property has an exemption)
  • Do not have a fossil fuel (gas, oil etc) backup system

You should go straight to the Ofgem website and see when and how to apply yourself.

For straightforward cases the process will be a simple online application.  If your system is already installed and commissioned before the scheme opens, Ofgem will phase the application process to manage the work load. You will need to find out when your application window will be open, and act swiftly when the time is right.

If your case is more complex, probably because you have an oil or gas backup system or because the property is not your main home, it is likely that you will have to have energy meters installed and your payments will be based on regular meter readings. If this is the case, please contact Isoenergy and we will be happy to discuss how we can help.

If you do qualify for the scheme, the returns could be substantial and so it is definitely worth investing the time to find out more.  The subsidy will be paid for seven years and the opening rates are as follows:

Technology

RHI rate pence/kWh

Ground/Water Source Heat Pump

18.8

Air Source Heat Pump

7.3

Biomass Boiler

12.2

Solar Thermal

19.2

   

A biomass boiler or heat pump system in a typical property is likely to produce a tax-free, index-linked income of several thousand pounds per year.

A typical RHI payment calculation

Heat pump size

40kW

Eligible heat generated

115000 kWh

Assumed Seasonal Performance Factor

3.4

Tariff (GSHP)

£0.188

Potential annual RHI

£15,261

Potential annual fuel saving (against oil)

£4,900

Value over 7 year scheme lifetime

£141,127

   

We look forward to helping you benefit from this generous scheme.

The isoenergy RHI team.

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