Premium Payment Scheme Announced

 

The Government have announced the details of the Renewable Heat Premium Payments scheme, designed to subsidise the cost of installing qualifying domestic renewable heating systems.  Homeowners who install qualifying systems under the Premium Payment Scheme will also be eligible for continuing support under the Renewable Heat Incentive (RHI), providing they meet their installations meet the eligibility criteria of the full RHI scheme.



The Renewable Heat Premium Payment scheme is a short-term Government funded initiative making payments to householders to help them buy certain renewable heating technologies - solar thermal panels, heat pumps and biomass boilers.  For solar thermal products, any householder in England, Scotland and Wales can apply for a grant.  Heat Pump and Biomass grants are only available to householders without gas central heating in England, Scotland and Wales (those who are not connected to the gas grid and currently rely on alternative fuels such as oil, liquid gas, solid fuel or electricity for their heating).



A few conditions for applicants must be met, for example the house where the qualifying system is to be installed must be your main home and it must have basic energy efficiency measures in place. This means you will need to confirm you have loft insulation to a minimum of 250mm and cavity wall insulation, where these measures are practical. The renewable heat product you will be installing must be accredited under the Microgeneration Certification Scheme, and be installed by someone registered under the scheme, or equivalent. Click here to visit the MCS website for details.



Once the installation has been commissioned, the homeowner will be asked to fill in two customer surveys. They may also be chosen at random to have extra meters attached to your installation (free of charge) in order to monitor the output and efficiency of the system, and learn about how heating systems are used in practice in various different circumstances and types of home. It is a condition of the scheme that you are happy to have these meters installed.

 

Payment Levels

  • Air Source Heat Pump               £850           Voucher Valid for 5 months
  • Biomass Boiler                          £950           Voucher Valid for 6 months
  • Ground Source Heat Pump        £1250         Voucher Valid for 6 months
  • Solar Thermal                           £300           Voucher vaild for 3 months

 

Applications to the Energy Saving Trust are open from August 1st.  If you meet the conditions you will  receive a voucher. You then have a set number of months to redeem the voucher by returning a signed version with a copy of the invoice and a certificate from the Microgeneration Certification Scheme. You will then have the money paid into your bank account.  Please note that this is a cash-limited offer and once the budget limit is reached the scheme will immediately close. So you might want to prepare now so you can be quick off the mark. From today, you can contact EST via its website [External link]  or by phoning them on 0800 512 012 for information.   We also recommend that if you are interested in this scheme you make sure energy efficiency measures are in place. Carry out research to see which renewable heat technologies might work for you. Shop around for quotes from different installers.

 
Those installing qualifying systems under the Premium Payments Scheme will also be eligible for support through the RHI providing they meet the eligibility criteria of the full RHI scheme, as will anybody else who has installed eligible equipment since 15 July 2009. Click here for to view our Renewable Heat Incentive page. 

Important

This is a summary of the full conditions. We recommend you visit the Energy Savings Trust website for full details of how the scheme will work and eligibility criteria.