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DECC Announces £25 million Grant for Domestic Biomass, Heat Pumps and Solar Thermal

New £25 million grant announced for biomass, heat pumps and solar thermal

The domestic Renewable Heat Incentive (RHI), due to commence in October 2012, will be delayed. The Department of Energy and Climate Change has launched a launched a second tranche of the Renewable Heat Premium Payment (RHPP) which will provide one off payments for measures, partly to continue to support the industry while they consider how the RHI could work. DECC are now consulting on how they control costs for the RHI.

The second phase of the RHI for domestic renewable heat systems, (the first of which was for commercial) was originally intended to commence in October 2012 but will now be delayed, probably until summer 2013.

In announcing the delay of domestic RHI, DECC also announced the availability, from 2nd Aprilgeothermalheatpump 2012, of a second tranche of RHPP. RHPP is an interim measure for domestic properties, pending the start of domestic RHI. Rather than the provision of long term financial support for eligible equipment, the RHPP scheme involves the provision of a single direct payment to subsidise the installation of renewable heating systems in domestic properties. The payment is towards the equipment and installation costs of renewable technologies like biomass boilers, air and ground source heat pumps and solar thermal panels.

The first phase of the scheme commenced on 1 August 2011 and ended on 31 March 2012. The budget for the first tranche of RHPP was £15m and the budget for the second tranche has been increased to £25m, with pots set aside for community schemes and social housing.

The Government hopes that RHPP will provide it with valuable insights into how RHI will work in the domestic sector, and assist in appropriately scoping which renewable heat technologies should be prioritised. To this end, recipients of RHPP are required to provide feedback on how their installation works in practice. It is intended that those persons who have received or are receiving RHPP will also be able to apply for tariff support when the second phase of the RHI is implemented.

The RHI interim cost control consultation seeks views on DECC’s plans to manage the budget for the non-domestic RHI. Stating that it will be taking on board lessons learned from the Feed-in-tariff scheme, the consultation includes a proposal that RHI would be suspended to new entrants, until the next financial year, on one month’s notice if 80% of the available budget is expected to be spent.
The RHPP- Phase 2 will run from 1st May 2012 to 31st March 2013. You can pre register your interest in the funding by clicking on this link here

Source: Sustainable Homes UK (

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