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Everything You Need to Know About the Renewable Heat Incentive

In spring 2014, the Renewable Heat Incentive (RHI) will be implemented by the Government. Overseen by energy regulator Ofgem, this scheme will provide financial support for people who want to take advantage of the benefits of heat pumps. Similar to past Government incentives, the RHI will pay homeowners for each kilowatt hour (kWh) their newly installed system produces. This payment will be for seven years without being subject to tax.

How much money will I be entitled to?

Saving amount varies depending on home size. For an average sized home, producing 15,000 kWh via an air heat pump, the entitlement can be in excess of £7,000. If your home has a ground heat installed, the entitlement can be up to £20,000. These figures are representative of an average sized home. If your property is larger, the amounts can be much higher.

Am I eligible?

If you fall within one of the following groups, you may be eligible for the RHI:

  • Homeowners who live in their own property
  • Landlords of private property
  • Social landlords with the appropriate registration 
  • Self-builders
  • People who own a third party heating system

If you belong to one of these categories, eligibility for the RHI is dependant on a household meeting the following criteria:

A Green Deal Assessment has been performed and a review of appropriate options for the property has been produced.

Insulation levels within the property are up to the standards required by the Green Deal Assessment
In cases of insulation pending installment, a Performance Certificate (EPC) should be produced when work is completed.

What if I already have a heat pump installed?

If you already have a heat pump installed, you could still qualify for benefits under the Renewable Heat Incentive. If your pump was installed before after the 15th of July 2009, and your home passes all other criteria, you could be eligible for payment in arrears.

There could potentially be a lot of homeowners applying for this arrears payment. To combat this, a staggered payment strategy will be put into place. Details of when the application process have not yet been released, but when they are, ensure you apply in good time; there will be a cut off date.



More information...

For more information on this or any other Enviko services or products please call Enviko on (England & Wales) +44 (0)20 8816 7631 or (Scotland) +44 (0)131 335 0032 or by email.

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