Latest news from DECC on the domestic RHI

We have some exciting times ahead of us.  The latest domestic RHI announcement from DECC paves the way for the domestic market to develop at a faster pace than ever before, opening up many opportunities for householders across England and Wales.

The RHI will remove the obstacles that were stalling the growth of the market due to the investment required from homeowners.

So what are the key facts:

  •  The RHI is planned to begin payments in the spring of 2014.
  •  Installations made from today will be eligible to apply for payments from next spring. The incentive will also include all installations since 15th July 2009.
  •  Tariffs will apply to domestic lived in properties in the retrofit sector, and be paid to the owner of the system.  This will include systems in privately owned homes, second homes, private landlords, social landlords and self-build new homes. It will not be limited to properties off the gas grid.
  • MCS qualified equipment must be installed and specified by an MCS qualified installer in order to make an application.
  • The tariff levels for Ground source heat pumps is 18.8p per kWh, Solar thermal units are 19.2p per kWh and Air source heat pumps 7.3p per kWh. This is paid quarterly for a period of 7 years.
  • Payments will be based on deemed heat from a Green Deal Assessment.
  • The payments will be funded from general taxation.but what does this mean? Lets’ take a look at this worked example of an Ecodan system with a packaged cylinder, radiators and underfloor heating:

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