It’s a question we are being asked with increased frequency. Our customers quite rightly wish to access any funding available to them when switching to renewables and the RHI scheme will be closing to new applicants on March 31st, 2022, hence the urgency.
In practical terms the deadline of March 31st means having your new heat pump system installed, commissioned and registered with the RHI by that date. With time running out what do you need to consider?
What is the RHI?
In a nutshell it’s a government scheme to financially reward home-owners installing new renewable energy systems (ie heat pumps) to heat their homes and therefore reduce carbon emissions. Payments are made quarterly for seven years for the amount of renewable heat it’s estimated the new system produces. Payments are intended to help offset the cost of installing and running the heating system.
Is it for me?
Many thousands of people have taken advantage of the RHI so it’s likely it could be. In the past we’d have suggested that off-grid homes (those using oil) were most suitable because of the higher savings a heat pump system could deliver. However the recent rise in gas prices means that heat pumps can offer attractive savings across the board.
Is it the only incentive scheme available?
At present, yes. However, from April 2022 the government plans to replace the RHI with the Boiler Upgrade Scheme (BUS) which will pay up to £5,000 for air source heat pumps installations and up to £6,000 for ground source heat pumps. A major benefit of BUS is that it will be a voucher scheme, reducing a homeowner’s initial outlay. However, there are important differences. BUS requires the technology installed to cover all heating and hot water provision; the RHI allows heat-only systems (you can have gas or oil providing hot water if you wish). BUS also requires heat pumps to be slightly more efficient.
I’m interested in the RHI. What should I do?
The application process is via Ofgem. Its website has full details, including a downloadable ‘Essential Guide for Applicants’.
Consumer website Which is also a good source of information and includes RHI costs and earnings comparisons calculated prior to fuel price rises.
Infinite Heating & Energy can provide expert, impartial advice on the best solution for your home. We are always happy to chat – get in touch.