The 2012 Consultation gave only guidelines for tariffs, we do not expect these to be confirmed until either later in 2013 or early 2014 in advance of the launch in April 2014.

The consultation gave the following information:

1. That tariffs will be paid over a 7 year period but intended over this time to compensate for 20 years worth of heat.

2. The payments will be made on the basis of ‘deemed’ heat output from the systems, with calculations carried out by a professional, probably a Green Deal Assessor.

3. The tariff payments will not be set until the government completes it’s research but they are expected to be in the following ranges :

Air source heat pumps – 6.9p – 11.5p; Ground and water source heat pumps – 12.5p – 17.3p; biomass boiler – 5.1p – 8.7p; solar thermal – 17.3p

4. The tariff payments are for a unit of heat, being one kilowat hour.

5. It is expected that the payments will be made quarterly in arrears.

6. Payments will probably be subject to an annual self declaration by the customer supported by occasional spot-checks or similar measures.

7. There will be stringent measures to ensure that the RHI budget is not overspent after the recent problems with the Feed In Tariff which will probably result in a degression mechanism linked to key target set-points and triggers.