Welcomed increase in renewable heat incentive payments

25th January 2017

The government have recently announced a 33% increase in Renewable Heat Incentive (RHI) payments from April 2017. RHI is a financial initiative that that encourages the use of renewable heating. The incentive pays quarterly payments for seven years based on the amount of green heat generated. The tariff for air source heat pumps is set to increase to 10.02 pence per kilowatt-hour (kWh). This new tariff will be applicable to any new installations, however the increase in tariff will not commence until the regulation comes into force.

However, heat demand limits will also be introduced to limit the payments any household can receive. The heat demand limit will be set at 20,000kWh for air source heat pumps. These changes will not disqualify properties with a greater heat demand from applying to the scheme, but will just cap the amount of funding available. These changes will not come into effect until April, meaning that installations before then will receive full RHI.

Martin Perrin, Technical Director of Bublshop said: “We recommend installers should be focusing on anyone who may be considering installing an air source heat pump into a property with high heat demands to do so before April. Applications for RHI made before then will be eligible for the higher tariff and will receive payments for the full amount of green heat generated.”

For more information on RHI and Air Source Heat Pumps, contact Bublshop on 01747 826900.