The Renewable Heat Incentive (RHI), launched by the government in March 2011, should mean that householders will receive a payment for the heat generated 
by technologies such as heat pumps and biomass boilers....but not just yet. The first phase of the RHI scheme is aimed primarily at the commercial and public sector, and not-for-profit/community groups. After delays while approval from the European Commission was sought, this first phase finally opened for applications on 28 November 2011.
Domestic RHI
The domestic sector is promised a similar RHI tariff from October 2012, to tie in with the Green Deal. Details of this are still being worked out, notably how the various technologies work in different types of housing. However, it has confirmed that anyone who has installed renewable heat since 15 July 2009 will qualify for the payments.
To get a rough idea of tariff levels, it is informative to look at those set for industry in phase 1. For instance, a solar thermal system of less than 200 kWth capacity will attract payments of 8.5 pence/kWh, whereas for a large biomass combuster the rate is 2.6 p/kWh. These payments are made quarterly over 20 years.
Keep checking the DECC website for updates about the RHI scheme for domestic properties! In the meantime, there is money on offer in the form of 'RHI Premium Payments' - some £15 million set aside to help up to 25,000 households cover the cost of renewable heat installations. But, just what is being promised, which measures will qualify for the payments, and what are the conditions?
Renewable Heat Premium
This scheme opened for applications from 1 August 2011, and is set to run until 31 March 2012, or until the money runs out! Payments are one-off grants towards the cost of installing domestic heating systems based on certain renewable technologies. In return for the grant, participants and suppliers are asked to provide feedback on how the equipment works in practice. These premium recipients are thus being used to 'test the water' and see what issues might arise with a large-scale roll-out, before the RHI tariff is finalized. The government is focusing support for primary heating systems, such as ground-source heat pumps and biomass boilers, particularly in households off the gas grid.
Who is eligible?
Any householder who:
- Owns the property or is a tenant who is purchasing the system themselves, and has any necessary planning consents in place
- Is off the gas grid and is currently using (or has switched from) fossil fuel heating (e.g. oil, LPG, coal) - but NOTE: the solar thermal grant can be applied for irrespective of how you currently heat your home
- Has a well-insulated home according to its Energy Performance Certificate (e.g. optimum loft and cavity wall insulation)
- Agrees to supply feedback on how the equipment performs
Levels of premium
Flat-rate RHI Premium Payments are for the following technologies:
- Solar thermal - £300/unit (any householder is eligible for this)
- Air-source heat pumps (air-to-water) - £850/unit
- Biomass boilers - £950/unit
- Ground-source heat pumps - £1250/unit
If your application is successful you will receive a voucher, which will be redeemed for cash within a certain time period when you submit it with your final invoice from your installer together with a certificate from the Microgeneration Certification Scheme. People who receive this on-off premium will still be eligible for the RHI payments from 2012.
How to apply
For further details about the scheme and a link for applicants are available on the Energy Saving Trust website.