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After over ten years, the Government’s Renewable Heat Incentive has closed to new applicants on the 31st March 2022. The two separate schemes for domestic applicants and non-domestic will no longer accept applicants, although those already on the schemes will continue to receive the payments for the allotted time of seven and 20 years respectively.

The RHI schemes prompted a significant increase in the number of households and businesses able to access renewable heating systems such as air source heat pumps and ground source heat pumps. Created to increase uptake of the technology, they have helped system owners earn back the value of the system installation, normally within the period of the payments. For example, when coupled with the running cost savings, a typical ground source heat pump system owner would expect to break even within seven years. Beyond that period, they are expected to continue to make savings against their alternative heating options such as natural gas and oil. In today’s volatile energy market, these savings are even higher.

The Government has recognised that some form of support needs to be available to encourage continued growth in the renewable heating sector and not undo all the hard work done so far. To this end, they have created its replacement, the Boiler Upgrade Scheme.

Unlike the RHI which was paid based on the size and output of the system, the Boiler Upgrade Scheme offers a one-off lump sum payment to reimburse a fixed amount of the investment. £6,000 for ground source heat pumps and £5,000 towards an air source heat pump. Eligible systems must meet a set criteria including a maximum installation size of 45kW, enough to cover all but the largest systems.

Isoenergy expects the new Boiler Upgrade Scheme to make the renewable heating options more attractive to the small-scale installation, which has shown only marginal increases in uptake under the RHI.  

If you are interested in finding out how a renewable heating system can save both your carbon footprint and running costs, get in touch or call the team on 01293 821 345.


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