The domestic renewable heat incentive (RHI), the world's first long-term financial support programme for renewable heat, has officially been launched by the Department of Energy and Climate Change.
The long awaited scheme, which offers homeowners payments to offset the cost of installing low carbon systems in their properties, is open to everyone - homeowners, social and private landlords, self-builders and households both on and off the gas grid.
The tariffs have been set at:
As part of the incentive, guaranteed payments are made quarterly over seven years. Announcing the scheme, minister for energy Greg Barker said:
“This is the first scheme of its kind in the world – showing yet again that the UK is leading the way in the clean energy sector. Not only will people have warmer homes and cheaper fuel bills, they will reduce their carbon emissions, and will also get cash payments for installing these new technologies. It opens up a market for the supply chain, engineers and installers – generating growth and supporting jobs as part of our long-term economic plan."
The technologies currently covered by the scheme are:
Only one space heating system is allowed per property but homeowners can apply for solar thermal for hot water and a space heating system.
The guaranteed payments are made quarterly over seven years for households in England, Wales and Scotland. (Northern Ireland has its own RHI scheme). The scheme is designed to bridge the gap between the cost of fossil fuel heat sources and renewable heat alternatives.
The Renewable Energy Association (REA) has already backed the scheme, and says its introduction could make 2014 a breakthrough year for renewable heating.
Mike Landy, head of on-site renewables at the REA, said:
“Domestic RHI is set to be one of the highlights of the Government’s green agenda in 2014. It will mean that renewable home heating is not just environmentally sensible, but also financially attractive.”
Installers and industry and the Domestic Renewable Heat Incentive - If you're a Microgeneration Certification Scheme (MCS) accredited installer or working in the renewable heating industry visit Ofgem for information essential to your professional knowledge and how to support your customers. The scheme has already been backed by many companies and associations.