It's been a long time coming, but at the end of last week the Department of Energy & Climate Change (DECC) finally announced the details for the domestic Renewable Heat Incentive, with the figures expected to provide a much needed boost to the UK's renewable energy industry.

The RHI will allow householders to be paid hundreds of pounds a year for any energy generated by renewable sources such as solar thermal panels, biomass boilers and heat pumps. By persuading people to install and switch over to these methods, it is believed Britain will successfully be able to meet renewable targets and cut down the country's carbon footprint, as well as save householders money on energy bills.

The tariff levels have been set at:

  • 7.3p/kWh for air source heat pumps
  • 12.2p/kWh for biomass boilers
  • 18.8p/kWh for ground source heat pumps 
  • At least 19.2 p/kWh for solar thermal

Energy & Climate Change Minister Greg Barker said: "The Coalition is committed to helping hardworking families with the cost of living. Investing for the long term in new renewable heat technologies will mean cleaner energy and cheaper bills. So this package of measures is a big step forward in our drive to get innovative renewable heating kit in our homes.

"Householders can now invest in a range of exciting heating technologies knowing how much the tariff will be for different renewable heat technologies and benefit from the clean green heat produced. We are also sending a clear signal to industry that the Coalition is 110% committed to boosting and sustaining growth in this sector"

The scheme will be made available to homeowners, private and social landlords, third party owners of heating systems, people who build their own homes and anyone who has installed a renewable heat system since 15th July 2009. It currently supports air to water heat pumps, biomass only boilers and biomass pellet stoves with back boilers, ground and water source heat pumps, flat plate and evacuated tube solar thermal panels.

Applicants must complete a Green Deal Assessment before submitting their application and ensure they have met minimum loft (250mm) and cavity wall insulation requirements, where appropriate. All installations and installers must be MCS certified (or certified by an equivalent scheme). MCS certified installers are currently required to be members of the Renewable Energy Consumer Code, which is backed by the Trading Standards Institute.

The DECC is currently finalising the details  of the expansion of the non-domestic RHI scheme and will confirm what comes next in Autumn alongside the outcome of the tariff review. The DECC's aim to introduce these changes from Spring 2014 onwards remains unchanged.

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