Renewable Heat Premium Payment (RHPP) incentive doubled

The Department of Energy and Climate Change (DECC) has announced that it has increased the value of money off vouchers under the Renewable Heat Premium Payment (RHPP) scheme to £2,300 for ground source heat pumps, £2,000 for biomass boilers, £1,300 for air source heat pumps and £600 for solar thermal systems.

The scheme was launched on July 2011 and has supported over 10,000 renewable heat installations. It is designed to encourage householders to switch to renewable heating systems, by offering money off the cost of equipment and is specifically targeted at those living off the gas grid, who stand to make the biggest financial and carbon savings. It was extended in March 2013, as a stop-gap measure to cover the delayed launch of the Renewable Heat Incentive, and will go on until March 2014.

Technology New Voucher value Previous Voucher value
Ground Source Heat Pumps £2,300 £1,250
Biomass Boilers £2,000 £950
Air Source Heat Pumps £1,300 £850
Solar Thermal £600 £300

Energy and Climate Change Minister Greg Barker said: “Over 10,000 householders have already taken advantage of money off renewable heating kit and we want to see even more consumers stepping up to the plate and getting on board.” “But I want to go even further. I want to kick start this exciting new market for consumer renewable heat technologies.” “This time limited, big increase in the value of vouchers for hardworking people who want to do something positive to install money saving green heating in their homes, should be a real boost for this growing green sector.” REA

Chief Executive Gaynor Hartnell said: “It’s welcome that these grants are being continued and the levels increased. They need to stay in place until the proper heat payment scheme for householders commences. This has been delayed on a number of occasions and we hope this will be the last time this stop-gap measure is needed.”

Stuart Elmes, Chair of the STA’s Solar Thermal Working Group, said: “This is fantastic news for solar heating. The industry can really get behind the improved voucher levels and vigorously drive towards a spring 2014 launch of the domestic RHI with renewed enthusiasm.” “This announcement is, at last, a tangible demonstration of Government’s oft-proclaimed commitment to domestic renewable heat technologies. Many within industry had wavered in their belief that they would ever see a domestic RHI! We now need to get the good news out there and let householders know that solar heating is more affordable.”