This is an interim scheme to support renewable heat installations before the RHI starts for residential installations in 2012
Who invents these names?
What is it?
It looks like a grant for household renewable heat installations installed after April 2011 and before the RHI scheme starts for residential installations.
How much?
The level has yet to be confirmed, but the RHI announcement quoted the following possible levels:
Premium Payment 'likely levels'
| Heat Technology |
Payment per installation |
| Air source heat pumps |
£850 |
| Biomass boilers |
£950 |
| Ground source heat pumps |
£1,250 |
| Solar water heating |
£300 |
Will everyone be eligible?
Not necessarily! The government has only allowed a limited fund - £15m - for this aspect of the scheme.
It has said there may be restrictions:
We may consider focusing support for primary heating systems, such as heat pumps and biomass boilers, on households off the gas grid, where fossil fuels like heating oil are both more expensive and have a higher carbon content.
Note also that receiving a Renewable Heat Premium Payment does not automatically mean you'll be eligible for RHI tariff payments.
Timetable for introduction
The payments are due to start from July 2011.
The government plans to announce further details in May 2011.
Other requirements
Government says:
In return for the payments, participants will be asked to provide some feedback on how the equipment works in practice. This information will help enable Government, manufacturers, installers and consumers to better understand how to maximise performance of the various technologies. ... [This] will help ensure that before we commit to long term payments in a sector where it is particularly difficult to predict levels of take-up and performance of different technologies, we manage their roll out and learn more about them, as well as controlling the budget and ensuring the money goes where it is intended to.