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RHI Premium Payments Extended

Renewable Heat Incentive

The Department of Energy and Climate Change has announced that it will launch a second phase to the Renewable Heat Premium Payment (RHPP) scheme, however, the rollout of the domestic Renewable Heat Incentive (RHI) until 2013.

The RHPP scheme, which gives an upfront payment off renewable technologies such as; ground and air source heat pumps, biomass boilers and solar thermal panels, will be launched on April 2 this year and will be worth £10 million more than the existing scheme.

The second phase will also include an £8 million competition for communities to apply for grants to encourage community groups to install renewable heat technologies. There will also be a £10 million competition for social landlords.

The Renewable Heat Premium Payment scheme will continue to be administered by the Energy Saving Trust.

Announcing the news, the Climate Change Minister, Greg Barker, said: “The new Renewable Heat Premium Payment scheme will be bigger and better than the original.

“We’re increasing the budget from £15 million to £25 million, for the first time we’re including community schemes and there’ll be more social housing schemes that can benefit. Those people who are reliant on expensive oil or electric heating should consider applying to the Premium Payment scheme to cut their fuel bills in the long term.

“Generating heat from renewables will not just cut carbon emissions; it will also help create a market in developing, selling and installing kit like solar thermal panels or heat pumps.”

Simon Roberts, Operations Manager for Easy MCS Ltd comments "This extension to the RHPP is great news for Renewable Heat installers. We have had a number of installers who have missed out on a great deal of work due to the scheme ending at the end of March. This announcement will give longevity to an area of the market which has been lacking in Financial incentives in comparison to the Renewable Electricity sector. The delay to the introduction of the Domestic Renewable Heat Incentive will not come as a hug surprise to many but will at least provide some clarity to allow installers to get themselves trained and prepared. The extension of the RHPP will fill the gap until the RHI is introduced and give even more of an incentive to consumers as they will receive; an upfront payment (RHPP), an ongoing payment (RHI) and savings on the existing fuel bills".

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