The Government has published proposals for the domestic Renewable Heat Incentive (RHI), which is due to be introduced in Summer 2013 and will provide homeowners with an income from renewable heating installations. 

Below is a brief summary of the key points from the proposals.

The proposed eligible technologies are air source and ground source heat pumps, biomass and solar thermal. The proposed tariff rates are shown in the table below.

 

ASHP

Biomass

GSHP

Solar thermal

Proposed tariff   rate (p/kWh)

6.9 – 11.5

5.2 – 8.7

12.5 – 17.3

17.3

The proposed tariff payments will be for the heat generated over twenty years, but the total amount will actually be paid over the first seven years.

Domestic renewable heat installations won’t need to be metered, unlike commercial ones, which do need to be metered. The RHI payments will be based on a deemed output for the system.

Properties will need to have all of the thermal energy efficiency measures identified as ‘green ticks’ through the Green Deal assessment process (excluding solid wall insulation) installed in order to be eligible for the RHI payments.

These proposals are out for public consultation so they aren’t yet locked in stone. As the consultation document says “Investment decisions should not be made on the assumption that the proposals set out here will not change”.

The consultation runs until 7 December 2012. DECC aims to publish its response to the consultation early in 2013 with the scheme opening in the summer of 2013.

The consultation document is available at www.decc.gov.uk/assets/decc/11/consultation/RHI/6453-rhi-consultation-domestic.pdf