Domestic RHI – set to revolutionise the UK’s home heating market

Nu-Heat welcomes DECC’s confirmation of the payment levels available under the Domestic RHI.

“The industry has been waiting a long time for these figures and the announcement made by DECC is not only what we wanted to hear but necessary, also,” says Adrian Troop, Nu-Heat Sales Director.

“Homeowners that had put their plans to invest on hold and those now interested in heat pumps and/or solar thermal now have clarity on tariff rates; a clear financial incentive to commit to the installation of a renewable heating system.”

The much anticipated RHI tariff rates are encouraging and at the higher end of those suggested by DECC in its consultation of the scheme.

 

Long term RHI tariff support has been set at:

Air source heat pump: 7.3p/kWh

Ground source heat pump: 18.8p/kWh

Solar thermal: 19.2p/kWh at least

Typical example: Average 3-bedroomed house using 29,000kWh of heating p.a.#
Technology SPF## Renewable heating amount Tariff payment Annual payment Payment over 7 years
GSHP: 3.7 14,595kWh £0.188/kWh £2,743.78 £19,206.49
ASHP: 3 13,333kWh £0.073/kWh £973.33 £6,813.00

#According to the Energy Performance Certificate (EPC)
## Seasonal Performance Factor based on UFH or radiators running at 45oC design condition.

What is the RHI?

The Renewable Heat Incentive aims to repay the installation cost of a renewable technology, such as a heat pump or solar thermal, meaning that homeowners can protect themselves from ever increasing energy prices. Payments will be back dated to mid-2009 when the scheme was first announced and will be paid over a 7 year period.

The Renewable Heat Premium Payment (RHPP) remains available in the run up to the launch in Spring 2014 with the value of the grant subtracted from any RHI payments.

Those off the gas grid could cut their fuel bills by thousands of pounds a year by taking advantage of the Domestic RHI. In addition to and unlike the RHPP the RHI is now also available to those dwellings that are on the gas grid, in an aim to encourage better practice. Payments for those on the gas grid will also be related to predicted efficiency performance.

The renewable technology must be MCS accredited, as must the installer, for the system to be eligible under the RHI. Installers are advised to carry out relevant training on renewable products and consider becoming MCS accredited in their own right.

Nu-Heat’s full range of air and ground source heat pumps and solar thermal products are all accredited under MCS.

Energy & Climate Change minister Greg Barker said the announcement sent a clear signal to industry that the Coalition is 110% committed to boosting and sustaining growth in this sector, and stressed that government remains committed to opening the scheme for applications in Spring 2014.

Changes to the RHPP

Customers that have recently had a quote from Nu-Heat for a heat pump may be interested in changes to the Government’s Renewable Heat Premium Payment (RHPP) scheme that have increased the amount of support available to households installing this equipment.

The payments will run until 31st March 2014, after which the Government intends to bring in the proposed Renewable Heat Incentive (RHI)*.

The new payments are as follows:

 

 

 

 

 

 

Further details can be found on our website, at www.decc.gov.uk/rhi or at www.energysavingtrust.org.uk.

Alternatively, feel free to speak to your dedicated account manager directly.

* Conditions apply

Becoming Independently MCS Approved & the transition from our MCS Umbrella Scheme:

 

Homeowners are becoming increasingly aware of legislation relating to renewables, including the recommendation for installers to be MCS approved. This recommendation is a requirement for government funding and the growing number of manufacturers who need their system to be MCS approved and installed by an MCS-approved installer in order to generate their warranty. This change from many of the major manufacturers means that the kind of ‘Umbrella Scheme’ that Nu-Heat has provided no longer fits the bill. Installers that are MCS Approved in their own right are better placed to make the most of the market and instil confidence in customers in regards to their technical ability.

 

 

We want to talk through the changes to our MCS Support Network with those previously on our Umbrella Scheme, face-to-face, so if you have not already been contacted by your Field Sales Manager please contact your dedicated Nu-Heat Account Manager to discuss our growing relationship with Easy MCS and the support Nu-Heat offers to help you become MCS Approved in your own right.

MCS support

For installers looking to become MCS Approved in their own right and for those new to renewables Nu-Heat offers assistance through the MCS process, helping with accreditation and on-going compliance. Inclusive technical support is available throughout an installation, including commissioning and inspection of a heat pump system prior to MCS inspection. Our comprehensive Customer Handover Pack includes complete documentation on everything needed to comply with MCS guidelines and eligibility for the Premium Payment and RHI schemes where applicable, fulfilling a large part of the MCS requirement for each installation.