Proposals for the Renewable Heat Incentive (RHI) have today been published by the Department for Energy & Climate Change (DECC). Key proposals within the announcement are as follows:
- Indicative tariff ranges for air source heat pumps 6.9 – 11.5p/kWh
- Indicative tariff ranges for ground source heat pumps 12.5 – 17.3p/kWh
- Homeowners will receive payments over seven years for each unit of heat expected to be produced, whether it is actually generated or not.
This is good news for homeowners who can expect a short payback period as well as high levels of ongoing additional generated income, in addition to a grant through the Renewable Heat Premium Payment scheme (RHPP) for replacing their fossil fuel boilers with a heat pump system.
There are number of benefits of installing a Heat Pump:
- Usually fits your current radiators and/or underfloor heating system
- Saves between 30% and 70% on existing bills
- Life expectancy up to 3 times longer than a traditional fossil fuel boiler
- Can be 400% efficient – 1 unit of electricity in can produce up to 4 units output
- Significantly reduces carbon emissions thus helping the environment
- Enhances property value by lowering property running costs
- Contributes towards higher rating Energy Performance Certificate (EPC)
- The heat pump can provide all of your heating and hot water removing the need for a fossil fuel boiler
Therefore, taking the above into consideration, act now and claim your RHPP grant in anticipation of the annual payments. Anyone installing an accredited heat pump now will qualify for both the RHPP AND the RHI.
