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Renewable heat incentive scheme to launch in 2014

News represents boost for households looking to install solar thermal, biomass or heat pump technologies

money in changeUnder the Renewable Heat Incentive (RHI) scheme homes which invest in renewable heat technologies will, as of next year, be able to claim for hundreds of pounds worth of incentive payments.

DECC has confirmed tariff levels for air source pumps at 7.3p/kWh, 12.2p/kWh for biomass boilers, 18.8p/kWh for ground source heat pumps and 19.2p/kWh for solar thermal systems.

These payments will be made on a quarterly basis, for seven years and will predominantly be calculated based on heat output.

DECC will also provide an additional fixed payment of £230 per year for homes which have both a heat pump and metering system. Households which install a biomass boiler and metering system are eligible for an additional £200 per annum.

‘Cleaner energy and cheaper bills’

Energy and climate change minister, Greg Barker issued a statement on the scheme: “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.”

Spring 2014 launch

The RHI scheme is currently awaiting parliamentary approval and is expected to launch in spring next year. Households which installed relevant heat technology after plans were first announced in July 2009 will also be entitled to benefits.

The scheme will take over from the Renewable Heat Premium Payment scheme which provides incentives to cover costs of renewable heat installations.

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