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

DECC has 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.

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 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 RHPP- Phase 2 will run until 31 March 2013.

More information: www.decc.co.uk