On 12th July the proposed rates for for the domestic renewable heat incentive were finally announced. The scheme is due to come into operation in Spring 2014 and will pay households who have renewable heat systems installed for the heat they produce. The payments will be made for a period of 7 years and should make a well designed heating system at least pay for itself.
The eligible technologies are air source heat pumps (ASHP), biomass systems, ground source heat pumps (GSHP) and solar thermal and the rates will be 7.3, 12.2, 18.8 and 19.2 p/kWh of renewable heat produced respectively. The energy produced will be based on the heat demand quoted on the Energy Performance Certificate for the property and for heat pumps an estimate of the heat pump’s efficiency will also be used so the tariff is only paid on the renewable portion and not the electricity consumed. For solar thermal, the heat output will be based on the figure quoted on the MCS certificate. The tariffs will change each year in line with the RPI.
There will be an extra incentive of £230 per year for people who have a heat meter fitted to measure the actual heat produced by their heat pump.
Applicants must have a Green Deal Assessment before applying and meet minimum insulation standards recommended. Any previous grants received such as RHPP will be deducted to avoid a double subsidy.