If you install a renewable heating system, up until 31st March 2013, the government will give you a grant towards the cost known as the Renewable Heat Premium Payment (RHPP). This is currently £850 for air source heat pumps
The Renewable Heat Incentive (RHI) will be introduced later this year for domestic customers and will replace the RHPP. This will be paid over 7 years at a rate between 6.9p and 11.5p per kWh. According to the Energy Savings Trust, the government has confirmed that people who have installed equipment under RHPP will still be eligible for support through the RHI, providing they meet the eligibility criteria (given below) of the full RHI scheme
The RHI will act much in the same way as the Feed-In tariff for solar PV, it will pay for the energy you generate from a renewable source, meaning your renewable heating system not only saves on energy bills, it also pays for itself over time and continues to earn extra income. Through combining solar PV and RHI, heating and powering your home will become a truly profitable experience!
The UK government are proposing that consumers who installed a renewable heat installation since 15 July 2009 will be eligible to apply for the domestic RHI provided they: