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At long last we have the news everyone has been waiting to hear on the DRHI ( Domestic Renewable Heat Incentive)

The Department of Energy and Climate Change (DECC) has announced the domestic Renewable Heat Incentive (RHI) levels.

The tariff levels have been set at:

  • Solar thermal: 19.2p/kWh (minimum)
  • Biomass boilers: 12.2p/kWh
  • Ground source heat pumps: 18.8
  • Air source heat pumps: 12.2p/kWh  

DECC said that the solar thermal tariff would be a minimum of 19.2p but could be higher depending on the outcome of an assessment of the marginal cost of renewable energy. A final announcement on this will be made in the autumn.

Commenting on the launch of the domestic arm of the RHI, energy and climate change minister Greg Barker said: “Investing for the long term in new renewable heat technologies will mean cleaner energy and cheaper bills. So this package of measures is a big step forward in our drive to get innovative renewable heating kit in our homes.

“Householders can now invest in a range of exciting heating technologies knowing how much the tariff will be for different renewable heat technologies and benefit from the clean green heat produced. We are also sending a clear signal to industry that the coalition is 110% committed to boosting and sustaining growth in this sector.”

The domestic RHI will available to anyone who installed renewable heat technology and meets the RHI eligibility criteria from 15 July 2009.

In a move trailed by the recent revised RHPP payments, those seeking to claim RHI will need to complete a Green Deal assessment before applying. DECC states that applicants will be required to have met minimum loft (250mm) and cavity wall insulation requirements where appropriate.

The tariff will be paid on a quarterly basis for seven years and will be based on the estimated heat demand of the property in most cases. DECC is offering an additional £230 per year for consumers who take out metering and monitoring support packages for heat pumps and £200 for biomass boilers.

Mike Landy, head of on-site renewables at the Renewable Energy Association, said:

“After several delays and stagnation in the market, today’s announcement will give a huge boost to the domestic renewable heat industry. Companies will now be able to tell homeowners exactly how much financial support they can earn through the use of renewable heating systems. Green heat can be very cost effective, particularly for households off the gas grid, and can make a major dent in the UK’s greenhouse gas emissions from heating, which account for roughly double those of electricity and nearly half the UK total.”

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