DECC has today announced that the Renewable Heat Premium Payment (RHPP) for domestic installations of biomass and other green heating sources will be significantly increased, in most case being doubled¹. The measure will support renewable heat installations prior to the introduction of the domestic Renewable Heat Incentive (RHI). Vouchers are claimed and then redeemed after the technology has been installed. RHPP supports solar thermal, ground and air source heat pumps and biomass boilers.
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.”
The REA was a joint signatory together with other renewable heat trade associations on a letter to Greg Barker calling for the RHPP payments to be doubled. This is a stop-gap measure before full introduction of the RHI (similar to the Feed-in Tariffs but for heat) currently anticipated for spring 2014.
There is no guarantee that those receiving RHPP payments will be eligible for RHI support, as the RHI eligibility criteria have yet to be published, however if those receiving the RHPP do join the RHI, the payment will be deducted from RHI income.
Payments can only be made to properties with loft and cavity wall insulation (where applicable), who have had a Green Deal assessment, and for installations fitted by MCS-certified installers.
While welcoming today’s announcement, the industry has been waiting for almost 5 years since the RHI was originally announced² for the programme to be introduced and is in need of further policy certainty.