RHPP: Update May 2013

As of 20th May 2013 there will be more help with the upfront cost of installing a renewable heating system as the Department of Energy and Climate Change announces a doubling of the Renewable Heat Premium Payments.

These money off vouchers have been increased to:

• £2,300 for ground source heat pumps
• £2,000 for biomass boilers
• £1,300 for air source heat pumps, and
• £600 for solar thermal systems.

The RHPP scheme was introduced to help fill the gap, following delays to the renewable heat incentive which is now expected to launch in Spring 2014. Final details of the RHI scheme are expected this summer but as past experience shows, this could change! The RHPP payments are in effect an upfront payment of some of the RHI money, and will be subtracted from the total amount of RHI money due (proposals are to adjust the length of tariff payments, rather than the amount).

Due to the delay in the start of the RHI, the RHPP scheme was extended in March this year until the end of March 2014.

Householders wanting to benefit from the bigger upfront grants, will be required to undertake a Green Deal assessment before submitting a claim to the Energy Saving Trust to redeem their voucher. This will help householders think about how renewable heat could fit with energy efficiency improvements for their home and ensure they are advised on choosing the right technology for them. The additional voucher values are intended to reflect the cost of a Green Deal assessment, as well as the cost of getting these technologies installed in homes. Householders can also use the Green Deal to pay for some of the cost through savings on their energy bill.

The increased voucher values and Green Deal assessment requirement will kick in for any applications submitted today onwards. When the RHI proper starts next year, it is likely that householders will have to install all measures with a green tick on their Green Deal Occupancy Assessment before qualifying for RHI payments.

If you are interested in the possibilities of installing a renewable heating source, please contact us today to arrange a FREE survey and proposal with GreenGenUK.