Finance - Heat Pumps & Renewable Energy South West
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Renewable Heat Premium Payment (RHPP)

Source Energy are delighted to confirm the detail of the Renewable Heat Premium Payment (RHPP) that was published by the Department of Energy & Climate Change (DECC) on 21st July 2011.

The scheme will be focused at around 4 million households in Great Britain not heated by mains gas, who have to rely on higher carbon forms of heating and which also tend to be more expensive than gas, such as heating oil and electric fires to keep warm.

Participants will be asked to provide detailed feedback on their experience through a set of surveys. The Government will provide, for a significant sample of participants, additional free of charge meters for their heating equipment. This will allow Government to gather information to better understand renewable heat technologies and set appropriate domestic tariffs for the Renewable Heat Incentive (RHI).

Renewable Heat Premium Payment

Domestic Installation

Ground Source

Air Source

Premium Payment

£1,250.00

£850.00

Voucher Validity

6 months from application

5 months from application

Government has confirmed that claiming RHPP will not exclude you from the RHI. There will be separate eligibility criteria for the RHI.

Scheme Summary*

£12m Fund

First come first served. Register for the scheme now

Start Date

Applications from 1st August 2011

Payment Voucher

Apply for voucher and submit for payment following your installation

Close Date

Voucher must be submitted before 31st March 2012

General Eligibility 1

Residential dwelling without mains gas heating

General Eligibility 2

Minimum levels of loft and cavity wall insulation where practical

General Eligibility 3

MCS certified installer and product

Air Source Eligibility

Air to water heating via radiators, underfloor heating etc

*Full Details and FAQ's

www.energysavingstrust.org.uk

Registration of Interest and Voucher Application

Web

www.energysavingstrust.org.uk

Phone

0800 512 012

Disclaimer – Source Energy have provided a summary of the RHPP and RHI in relation to heat pump technology. Users of this information should conduct their own due diligence in relation to the decisions they are taking. Source Energy cannot be held responsible for the accuracy of information provided by a third party.

Renewable Heat Incentive (RHI)

Source Energy are delighted to confirm details of the Renewable Heat Incentive (RHI) that was published by the the Department of Energy & Climate Change (DECC) on 10th March 2011.

Press Notice. http://www.decc.gov.uk/en/content/cms/news/PN2011_023/PN2011_023.aspx

Full Details: http://www.decc.gov.uk/en/content/cms/what_we_do/uk_supply/energy_mix/renewable/policy/incentive/incentive.aspx

The Renewable Heat Incentive (RHI) is the first scheme of it's kind in the world and provides long term support for renewable heat technologies.

As a renewable energy company that specialises in heat pump technology, this guide focuses on key areas of the scheme, relevant to our current and future heat pump customers.

Applications.

The RHI will be administered by Ofgem. Applications for the scheme will be made directly to Ofgem by the owner of the equipment.

For more details:

Web

http://www.ofgem.gov.uk/e-serve/RHI/Pages/RHI.aspx

Phone

0845 200 2122

RHI Eligible Installations.

1. Domestic.

1. Existing ground source heat pump and air source heat pump customers whose system was commissioned on or after 15th July 2009, plus future installations.

2. Non-domestic.

1. Existing ground source heat pump only, whose system was commissioned on or after 15th July 2009 plus future installations.

RHI Non-Eligible Installations.

1. Existing non-domestic installations that have benefited from public grant funding such as the Low Carbon Building Programme Phase 2 Scheme unless the money is paid back.

2. All equipment and installations of less than 45kW must be certified under the Microgeneration Certification Scheme (MCS). Existing installations which have not used MCS certified equipment and installers will not be eligible for the RHI.

3. Air to air heat pumps and exhaust-air heat pumps.

RHI Payments.

1. Payments are made to the “owner of the installation”. In a domestic installation, this will therefore usually be the person who purchased and paid for the installation.

2. However, where a hire purchase agreement, conditional sale agreement or other similar arrangement has been entered into to cover the cost of the equipment and installation, the individual in possession of the equipment would be the “owner”. E.G. where a property developer sells the dwelling to their customer.

RHI Tariff.

Tariffs have been calculated on the basis of a required return on additional capital invested of 12%. Tariff levels will be adjusted each year in line with the Retail Price Index (RPI).

Domestic Installation

Autumn 2012

Tariff p/kW

Duration

Payment Calculation

Ground Source

Ground/Water to Water

TBC

20 years

Deemed

Air Source

Air to Water

TBC

20 years

Deemed

Non-domestic Installation

Phase 1 30th September 2011

Tariff p/kW

Duration

Payment Calculation

Ground Source

Less then 100kWth

4.3p

20 years

Metering

Ground Source

100kWth and above

3.0p

20 years

Metering

 

Phase 2 2012

 

 

 

Air Source

TBC

TBC

TBC

Metering

RHI Maintenance.

1. Participants will be required to maintain their equipment to ensure it is working effectively. 2. The annual declaration will require participants to confirm that the equipment is maintained and provide evidence if required.

What happens next? Source Energy will contact existing clients from July 2011 to confirm:

1. Eligibility for Renewable Heat Premium Payment 2. Eligibility for the Renewable Heat Incentive 3. Maintenance and metering requirements 4. Application process

Disclaimer – Source Energy have provided a summary of the RHPP and RHI in relation to heat pump technology. Users of this information should conduct their own due diligence in relation to the decisions they are taking. Source Energy cannot be held responsible for the accuracy of any information provided by third parties.

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