Householders across the country could get up to £1,250 of government funding to help towards the cost of installing renewable heating systems such as biomass boilers, air and ground source heat pumps and solar thermal panels.
The Government’s new £15 million ‘Renewable Heat Premium Payment’ scheme – which will open for applications on 1st August this year until March next year – will support up to 25,000 installations.
The scheme will be mainly focused at around 4 million households in Great Britain not heated by mains gas, who have to rely on higher carbon forms of heating which also tend to be more expensive than gas, such as heating oil and electric fires to keep warm.
Participants will be asked to provide detailed feedback on their experience through a set of surveys. This will allow Government to gather information to better understand renewable heat technologies. The Government will also provide, for a significant sample of participants, additional meters for their heating equipment. This will provide more detailed information so DECC can compare manufacturers’ and installers’ claims about performance with real data on energy use.
Climate Change Minister Greg Barker said:
“Today starts a new era in home heating because we’re making it more economical for people to go green by providing discounts off the cost of eco heaters. This should be great news for people who are reliant on expensive oil or electric heating as the Premium Payment scheme is really aimed at them.
“Getting money off an eco heater will not just cut carbon emissions, it will also help create a market in developing, selling and installing kit like solar thermal panels or heat pumps.”
How to apply
The Premium Payment scheme will be run by the Energy Saving Trust and from today an information line and website will go live to provide people with more information. Householders can call 0800 512 012 or visit www.energysavingtrust.org.uk/RHPP [External link]
Householders will need to ensure they have basic energy efficiency measures in place before applying on 1st August and grants will be available on a first come first served basis.
From 1st August, grants for the following technologies will be available:
Ground Source Heat Pump – £1250 grant (for homes without mains gas heating)
Biomass boiler – £950 grant (for homes without mains gas heating)
Air source heat pump – £850 grant (for homes without mains gas heating)
Solar thermal hot water panels – £300 grant (available to all households regardless of the type of heating system used)
£3m of the £15m will be set aside for registered social landlords to improve their housing stock. Details of how to apply for these funds will be announced at a later date.
Philip Sellwood, Chief Executive, Energy Saving Trust, said:
“Our field trials have shown high levels of householder satisfaction with heat technologies. When people have the kit installed in their homes they really see the benefit. Of course there is still more to be learnt about how to get the most out of the technologies – but the more they’re out there in people’s homes, the more they become part of daily life.
“Without a doubt, the main barrier that prevents people from taking the plunge is the up-front capital cost. This is a great start in overcoming this obstacle.”
People who have installed kit under the Premium Payment scheme could receive support through the Renewable Heat Incentive, providing they meet the eligibility criteria of the scheme when it is introduced.
Renewable Heat Incentive for industry, business and communities
The Government is also introducing financial assistance for industry, business and communities to generate their own renewable heat. It is intended that the Renewable Heat Incentive (RHI) will be open for applications from 30th September and administered by Ofgem E-Serve.