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Renewable heat incentive

Renewable Heat Incentive

Renewable heat incentive (RHI) tariffs are not yet confirmed but on Thursday 20th September 2012 the Department for Energy & Climate Change (DECC) released proposals for the tariff's payable under the Renewable Heat Incentive (RHI) for existing homes. The proposals released by DECC revealed that ground source heat pumps installed since 15th July 2009 will qualify for payments under the RHI. The proposals also stated that payments would be made to home owners for a period of seven years for each kilowatt hour (kWh) of heat that the property is deemed to require and will be delivered by the heat pump.

The tariff rates proposed are as follows:

Indicative tariff ranges for ground source heat pumps 12.5 - 17.3pkWh

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This is great news for home owners who can potentially now expect a much shorter payback period as well as higher levels of ongoing additional income for replacing their fossil fuel boilers with renewable energy heat pump systems.

Please note: As attractive as the above information might be, the RHI payments undergo regular change and scrutiny and as such FWT recommend that the payment incentive is researched thoroughly and is considered a ‘perk’ of the installation instead of being relied upon for the project.


'Please note to achieve the RHIPP payment of £1250 the system needs to be installed and commissioned before the 31st March 2013.’

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