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Renewable Heat Premium Payment scheme opens on 1 August 2011
Practical Law UK Legal Update 0-507-0219 (Approx. 4 pages)
Renewable Heat Premium Payment scheme opens on 1 August 2011
by PLC Environment
| Published on 25 Jul 2011 • England, Scotland, Wales |
The Department of Energy and Climate Change (DECC) announced, on 21 July 2011, that the Renewable Heat Premium Payment (RHPP) scheme opens on 1 August 2011. (Free access.)
Speedread
On 21 July 2011, the Department of Energy and Climate Change (DECC) announced that the Renewable Heat Premium Payment (RHPP) scheme would open for applications from 1 August 2011 to 31 March 2012. The Energy Saving Trust will administer the RHPP, which will provide grants towards installing domestic renewable heating systems, pending the introduction of the Renewable Heat Incentive (RHI) for domestic properties, expected in October 2012. Beneficiaries of RHPP grants could also be eligible for the RHI when it is introduced for domestic energy efficiency measures, provided they meet the eligibility criteria.
While all homes will be able to apply for the RHPP for solar thermal hot water panels, only homes that do not have mains gas heating will be able to apply for the RHPP for ground or air source heat pumps or biomass boilers.
The RHI for non-domestic properties will open from 30 September 2011.
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Background: the Renewable Heat Incentive
The government is introducing a Renewable Heat Incentive (RHI), under which organisations and individuals that install an eligible renewable heating system or inject biomethane into the gas grid will receive regular payments for a period of 20 years. The RHI will be rolled out in two phases:
- Phase One: Non-domestic renewable heating systems installed since 15 July 2009. This was originally due to start in July 2011.
- Phase Two: Domestic renewable heating systems installed since 15 July 2009. Pending the start of Phase Two, eligible domestic renewable heating systems will receive a Renewable Heat Premium Payment (RHPP) to help towards the capital costs of installation. The RHPP was originally intended to run from July 2011 to October 2012.
For more information, see Practice note, RHI: Renewable Heat Incentive.
Launch of RHPP
On 21 July 2011, the Department of Energy and Climate Change (DECC) announced that the RHPP scheme would open for applications from 1 August 2011 to 31 March 2012 (several months less than originally announced). It also announced the following details about the RHPP:
- A total of £15 million will be available to support up to 25,000 installations.
- The scheme will be reviewed after £10 million has been paid.
- The Energy Saving Trust will administer the scheme.
- Householders must have basic energy efficiency measures in place before they apply (that is, cavity and loft insulation).
- Recipients of the RHPP will have to provide detailed feedback through surveys and metering equipment, to help the government improve its understanding of renewable heat technologies.
Grants will be available for the following technologies for homes without mains gas heating:
- Ground source heat pump (£1,250).
- Biomass boiler (£950).
- Air source heat pump (£850).
Grants of £300 will be available to install solar thermal hot water panels in any home, regardless of the current heating system.
£3 million will be set aside for registered social landlords to improve their housing stock. Details will be announced at a later date.
Announcement on RHI timing
DECC has also announced that the RHI will open for non-domestic applications on 30 September 2011, subject to state aid approval.
Comment
Beneficiaries of RHPP grants could also be eligible for the RHI when it is introduced for domestic energy efficiency measures (probably in October 2012), provided they meet the eligibility criteria. However, the details of the RHI scheme for domestic installations have not yet been published, so applicants for the RHPP cannot know:
- Whether they will meet the eligibility criteria for the RHI in due course.
- If they are eligible, the rate of RHI payment they could receive.