The Renewable Heat Incentive (RHI)

Renewable Heat Incentive (RHI) Tariff for Domestic Renewable Heating Confirmed

Tariffs for the Renewable Heat Incentive (RHI) have been confirmed by the Department for Energy and Climate Change (DECC). Homeowners who install Renewable Energy Systems will qualify for Renewable Heat Incentive (RHI) payments subject to eligibility criteria. Tariff levels are confirmed now, the scheme launched on April 9th 2014 and payments will be made for a period of 7 years. This is great news for home owners across Gloucestershire, Herefordshire and Worcestershire who are looking at reducing their dependence on oil and LPG heating.

Air Source Heat Pump installed in Cheltenham, Gloucestershire

What is the Renewable Heat Incentive?

It is a payment for generating heat from renewable sources. Like the Feed In Tariffs, it is set by the Government. The RHI is administered by the official regulator Ofgem who pay the tariffs with money from the Treasury.

How much is the Renewable Heat Incentive worth to participants?

First of all you will save money by eliminating or reducing your need for gas or oil, both of which are becoming increasingly expensive year-on-year.

Secondly, you will be paid for the hot water and heat you generate and use yourself. It depends on exactly what systems you use and how large they are as to what the exact tariff level is. Below is an example of what a 4 bedroom detached property can expect from an Air Source Heat Pump for a typical four bedroom house.

Example Returns For a Four Bed Home from an Air Source Heat Pump - Guide Only

Example Returns For a Four Bed Home from an Air Source Heat Pump – Guide Only

This is great news for homeowners

Homeowners can expect a short payback period as well as high levels of ongoing additional generated income for replacing their fossil fuel boilers with a heat pump system.

  • Homeowners will receive guaranteed payments over 7 years, based upon actual heat requirements.
  • Receive an extra £230 per year for heat pump systems with monitoring.
  • Eligible for all installations completed from July 2009.
  • Saves between 30% and 70% on existing bills.
  • Payments started Spring 2014 and to be administered by Ofgem.

Benefits of installing a Heat Pump in your home:

  • Can fit to your current radiators and/or underfloor heating system.(dependent on size and type).
  • Saves between 30% and 70% on existing bills.
  • Life expectancy up to 3 times longer than a traditional fossil fuel boiler.
  • Up to 400% efficient – 1 unit of electricity can produce up to 4 units output dependent on emitter size.
  • Significantly reduces carbon emissions thus helping the environment.
  • Enhances property value by lowering property running costs.
  • Contributes towards higher rating Energy Performance Certificate (EPC).
  • The heat pump can provide all of your heating and hot water removing the need for a fossil fuel boiler.

GSM Limited are based in Newent, Gloucestershire and provide advice and guidance on all energy products such as Solar Panels, Air Source Heat Pumps and Ground Source Heat Pumps across Gloucestershire, Herefordshire and Worcestershire, and the surrounding areas that include, Worcester, Droitwich, Tewkesbury, Cheltenham, Stroud, Dursley, Stonehouse ,The Forest of Dean, Cirencester, Newent, Hereford, Ross-on-Wye and Ledbury.

For Solar Panels, Air Source Heat Pumps and Ground Source Heat Pumps, call our Renewable Energy Team on 01531 – 828 782.

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