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Final policy for domestic RHI announced

The Department of Energy and Climate Change (DECC) has announced its final policy regarding the Renewable Heat Incentive (RHI) for domestic consumers. The announcement sets out how the scheme will work and the tariff levels for each of the eligible technologies.

Final policy for domestic RHI announced

The Department of Energy and Climate Change (DECC) has announced its final policy regarding the Renewable Heat Incentive (RHI) for domestic consumers. The announcement sets out how the scheme will work and the tariff levels for each of the eligible technologies. 

The Microgeneration Certification Scheme (MCS) will play a central role in the domestic RHI ensuring the high quality of installations and providing consumer protection. All installers and products (up to 45kWth) must be MCS certified to be eligible for RHI funds.

The domestic RHI will launch in spring 2014 and will be available to domestic customers who have installed renewable heat technology and meet the RHI eligibility criteria from 15th July 2009.

The domestic RHI tariff will be paid on a quarterly basis for seven years and will be based on the estimated heat demand of the property in most cases. DECC is offering an additional £230 per year for customers who take out metering and monitoring support packages for heat pumps and £200 for biomass boilers.

The RHI tariff rates are as follows:

Technology

ASHP

GSHP

Biomass boilers

Solar thermal panels

Tariff

7.3p/kWh

18.8p/kWh

12.2p/kWh

At least 19.2 p/kWh

Domestic customers seeking to claim RHI will need to complete a Green Deal assessment before applying. DECC states that applicants will be required to have met minimum loft (250mm) and cavity wall insulation requirements where appropriate.

DECC has confirmed that the deeming calculation for biomass and heat pumps will be the estimated heat use (in kWh) of a property after the installation of the required energy efficiency measures. Where an applicant already has these installed, the figure will be taken from the Energy Performance Certificate (EPC) done as part of the Green Deal Assessment (standalone EPCs cannot be used). Where the Assessment identifies that the measures still need to be put in place, the figure will be taken from the updated EPC completed after the installation. For solar thermal systems, the calculation will be performed by the MCS installer in accordance with the MCS solar thermal standard.

Heat pumps or biomass systems will be allowed to be installed alongside a fossil fuel system providing that the system is metered. This includes hybrid systems. This will also apply to heat pumps or biomass systems installed alongside another renewable system. Solar thermal can be installed alongside a fossil fuel or renewable system and no metering for the solar thermal will be required. MCS is working with DECC to develop further guidance on metering. This will be available on the MCS website later in the year. In the meantime DECC has published the following guidance which can be found here.

New build properties will not be eligible for RHI payments with the exception of individual self-build homes. Social landlords will be able to apply for the RHI.

In order to view a full copy of the government's response and other supporting documents please click here. You may also be interested to read a DECC blog regarding the domestic RHI which is available here.

Any customer enquiries can be directed to the Energy Saving Advice Service (ESAS) on 0300 123 1234.