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Domestic RHI Announcement Released by DECC

Details on the highly anticipated Domestic Renewable Heat Incentive have finally been released this month by the Department of Energy and Climate Change. The Domestic RHI is scheduled to be released in spring 2014 offering domestic customers that install a renewable heating technology government payments for 7 years. The scheme will be open to both customers on and off the gas grid.

The technologies that will be eligible for the incentive are Solar Thermal, Biomass as well as Ground and Air Source Heat Pumps. As well as opening for new customers the Domestic RHI will also be available for installations as old as July 2009 on the provision that the install and product is MCS certified.

Technology Tariff (p/kWh)
Air-to-Water Heat Pump 7.3
Biomass Boiler 12.2
Ground or Water-source Heat Pump 18.8
Solar Thermal Hot Water 19.2 (at least) could be as high as 21.7p

No meters will be required under the scheme for any of the technologies, DECC have instead opted to deem the annual estimated heat demand (kWh) of each property for which quarterly government payments will be provided (see table above). The methods of deeming the demand will differ for each technology, Solar Thermal systems will derive their figure from an MCS estimate, Biomass systems will be deemed using an EPC heat demand figure. In order to deem the heat usage in properties using Heat Pumps, an MCS estimate will be used; however the full methodology for this technology has not yet been decided.

For Biomass and Heat Pump Customers a metering option is available which will provide an additional annual payment of £200 for Biomass and £230 for Heat Pumps. This option is only available to the first 2500 metering applicants in the first year of launch.

The Green Deal will also play a large role in the Renewable Heat Incentive in which every installation applying for the Domestic RHI will have to complete a Green Deal Assessment and meet each of their thermal efficiency ‘Green Ticks’ to be eligible for the incentive. Thermal Efficiencies include loft insulation, Cavity Wall (where practical) and heating controls to list some of the measures that may have to be carried out if a home is poorly insulated. This is to ensure than each property is efficient and low in heat loss before installing a green heating technology.

Duncan Renewables are fully certified Green Deal Assessors and will be able to provide this service as well as the installation of a range of MCS certified renewable heating technologies under the RHI offering a fully inclusive turn-key solution.

Until the launch of the Domestic RHI the Renewable Heat Premium Payment is still available to domestic customers from the Energy Saving Trust offering one-off grants for renewable heating installations. It is worth bearing in mind that DECC have also announced that any one off grants that have been received from the RHPP will be slowly deducted from the Domestic RHI over the course of the 7 year payments.

Technology RHPP Grant
Air-to-Water Heat Pump £1,300
Biomass Boiler £2,000
Ground or Water-source Heat Pump £2,300
Solar Thermal Hot Water £600

For more information on the Domestic RHI announcement please follow the link here.

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