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Renewable heat premium payment deadline approaching

Posted by Tasha Kosviner on 17 January 2014 at 10:34 am

If you’re considering installing a renewable heating system in your home and would like to take advantage of a one-off grant to help with the cost, then now’s the time to act.

The deadline for applying for a renewable heat premium payment (RHPP) is fast approaching with all applications due in by 31 March 2014. This does not mean you need to have your system installed by then, but you must have chosen an installer and be able to give details of the technology you plan to install and the expected installation date.  

The RHPP is a one off payment designed to encourage the uptake of renewable heat installations. The government is offering £1300 towards the cost of an air source heat pump, £2000 towards a biomass boiler, £2300 towards the cost of a ground, or water source heat pump and £600 towards a solar thermal (hot water) installation. 

The 31 March 2014 deadline is the date by which all paperwork has to be submitted to the Energy Saving Trust. The trust says there will be no extensions nor exceptions to this deadline. 

You can apply for your renewable heat premium payment online on the Energy Saving Trust website. 

The RHPP will come in the form of a voucher and is available to all homes which are off the gas grid, whether they are currently heated by oil, liquid gas, solid fuel or electricity. To be allowed to submit your voucher for payment, loft and cavity wall insulation must be in place where appropriate, and you must have had a green deal assessment

The RHPP runs alongside the renewable heat incentive (RHI), the domestic part of which is due to come into force in spring 2014. The domestic RHI offers regular payments for eligible renewable heat installations for a period of seven years. The amount you get depends on the outcome of your green deal assessment. The RHPP is intended as a one off payment to help with the cost of installation and the value of your RHPP will eventually be deducted from the total income you get from RHI.

More information

YouGen guide to renewable heat incentive

YouGen guide to renewable heat premium payment 

From the blog

Renewable heat incentive FAQs

I've got RHPP - is is worth applying for RHI? (Oct 2013)

When can I apply for domestic RHI? (Dec 2013)

Domestic renewable heat incentive: your questions answered (Dec 2013)

Check you are eligible for RHI before installing renewable heat (July 2013)

 

If you have a question about anything in the above blog, please ask it in the comments section below.

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Comments

18 comments - read them below or add one

Tasha Kosviner

Tasha KosvinerComment left on: 19 March 2014 at 9:44 am

@Josieq

That's what we're here for!

Having re-read your question, I see that you DID in fact get the renewable heat premium payment which means you won't be in the first tranch of renewable heat incentive pioneers eligible to apply when the scheme first opens. 

Once the launch happens, applications are invited as follows:

Months 1-3: New applications and legacy applicants that have not received renewable heat premium payments (RHPP).

Months 4-6: New applicants, legacy that haven't received RHPP and those part funded by RHPP who applied for a voucher before 20 May 2013 can apply.

Months 7-12: new applicants and all legacy applicants can apply.

Year 2 onwards: new applicants only

All legacy applicants must apply within the first year of the scheme; new applicants can apply as soon as their system is commissioned, and must apply within a year of the commissioning date. 

Legacy applicants are those who made installations between July 15 2009 and the start date of the scheme. 

If you sign up to our newsletter, we'll be letting people know when the scheme opens and when they're eligible to apply so you'll be sure not to let the date pass. 

 

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Josieq

JosieqComment left on: 17 March 2014 at 6:54 pm

Thanks so much for your reply its good to have some where to ask questions. will keep a watch for new start date!!!!!!.

 

Regards Josie

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Tasha Kosviner

Tasha KosvinerComment left on: 17 March 2014 at 9:15 am

Hi Josieq

Thanks for your question. 

Unfortunately it looks like the April 1 launch date for renewable heat incentive (RHI) payments will not now happen on April 1 as hoped. However, the relevant regulations are now progressing through parliament so hopes are high that it will happen sometime before the summer.

You can read more about the rocky progress of the legislation here

In terms of when you can make your application once the scheme opens, the dates for applications are staggered. However, sinced you haven't received the renewable heat premium payment you will be in the first group allowed to make your application as soon as the scheme opens. 

You can read more about the process of applying  for RHI here

 

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Josieq

JosieqComment left on: 17 March 2014 at 9:01 am

We installed a bio mass heater /boiler for central heating in our house June 2013. We have had the £2000 one off grant but when can we apply for the regular incentive payments not sure reading all the information here

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Beemer

BeemerComment left on: 30 January 2014 at 7:09 pm

Hi Thanks Cathy.

I am aware of the deemed info etc but as your quote states 'Where the assessment identifies that the measures still need to be put in place the figure will be taken from the updated EPC completed after their installation'

Therefore, if a GDAR is completed BEFORE the installation of  the planned  renewable system,the  assessor  will select the clients chosen renewable option which will then be shown in the GDAR.

Therefore, using your quote  above, an updated [or post]  epc will be required to provide the updated figures .

 

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Cathy Debenham

Cathy DebenhamComment left on: 30 January 2014 at 9:43 am

@Beemer, the key section from the government's document is this frompage 16:

47. The deeming calculation for biomass and heat pumps will be the estimated heat use (in kWh) of a property after the installation of the required energy efficiency measures. Where an applicant already has these installed, the figure will be taken from the Energy Performance Certificate (EPC) done as part of the Green Deal Assessment. Where the assessment identifies that the measures still need to be put in place the figure will be taken from the updated EPC completed after their installation.

I have read the document in detail several times, and am on Ofgem's user group for the developement of the application process, and have not heard any mention of the requirement you outline. My understanding is that you need the EPC for the heat demand figure, and the MCS certificate for proof of installation.

The domestic RHI is 'deemed' ie it uses the heat demand figure for the property which, for the purpose of an EPC, is calculated using the RdSAP (reduced standard assessment procedure). This looks at the size of the property and its thermal efficiency. 

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Beemer

BeemerComment left on: 28 January 2014 at 5:07 pm

Hi sorry, my point isn't about the min insulation levels -

For someone to receive the RHIor RHPP  payment they need a green deal assessment - great no problem.

However, if they have had a green deal assessment BEFORE their installation of renewable heating , [to get an indication of kw/h], isn't there a legal requirment to get a post install epc as proof of the installation [along with the mcs cert]  to show the accurate KW/h figures for the RHI.

[as stated previously the kw/h figures can vary significantly between a non renewable and renewable heating system].

Or - are you saying that if the renewable heating system isn't in place when a green deal assessment is completed, that only the mcs cert is required as proof ? 

Be great to get a definitive answer please, as I understood a post install epc was required to provide accurate kw/h figures.

 

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Cathy Debenham

Cathy DebenhamComment left on: 28 January 2014 at 12:36 pm

Hi Beemer

For the domestic RHI you need to have an EPC that was done after the installation of the required insulation. This is because:

1. the heat demand of the property will go down if you insulate and the deemed income is based on the heat demand figures in the EPC.

2. it is your proof that you have done the required insulation (or that it isn't appropriate ie doesn't have a green tick on the report).

The RHPP is just a one off grant and so the heat demand figure isn't relevant. The green deal assessment requirement in this case is to ensure that you've got the required insulation (and to encourage the take up of the green deal).

I hope this helps.

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Beemer

BeemerComment left on: 27 January 2014 at 6:32 pm

Thanks Cathy,

My question is valid for the RHPP or the RHI.

If someone has a green deal assessment before they have the installation of the renewable, do they then need a post install epc to claim their RHPP or RHI payments or is just the mcs cert required ?

My understanding was that a post install epc was required as the kw/h figures can vary between the old and renewable heating systems which would therefore impact on the payments.

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Cathy Debenham

Cathy DebenhamComment left on: 27 January 2014 at 9:34 am

Hi Beemer

Sorry, I misunderstood your question. The process I was talking about was the application for the domestic RHI, not the RHPP.

However, I've just had a look at the EST website and its FAQs say: 

"3.6 I’d like to apply for a Householder Voucher Grant, am I required do undertake a Green Deal Assessment? 

New applicants from May 20th 2013 will be required to undertake a Green Deal Assessment before submitting a claim to EST for payment of their voucher. The Assessment will help consumers choose the most appropriate new technology for their home and circumstances. As the voucher levels are being increased, this additional money will cover the costs of an Assessment. "

It doesn't say that they need a GDA before applying for the voucher.

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Beemer

BeemerComment left on: 25 January 2014 at 8:40 am

Hi Cathy and thanks for your response.

However, my understanding is that a pre install epc, carried out as part of the green deal assessment can be used to apply for your rhpp voucher, but this isn't paid until a post install epc is produced which then includes the renewable technology.

( the Kw/h figures on pre and post epc's can change significantly between old non renewable heating systems and new renewable systems.)

If the above is not to your understanding can you please post a link suggesting clarification from whichever decc document states otherwise - thanks.

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Cathy Debenham

Cathy DebenhamComment left on: 24 January 2014 at 9:40 am

Hi Beemer

The main benefit of getting RHPP is that you get the cash much quicker. You can claim back on the voucher as soon as the technology is installed. You're right that you then have to wait a bit longer to put in your application for RHI, but you will have already received a big chunk of it from RHPP, so overall, your cash flow is better.

The EPC is required to demonstrate that you have the required insulation installed, and to say what the heat load of your property is (the deemed RHI payment will be made on this). Once your technology is installed you will get an MCS certificate which is your proof of installation.

It doesn't matter when you get the green deal assessment (GDA) done in relation to the renewable heat installation. However, one of the eligibility criteria for both RHPP and RHI is that you have to have loft and cavity wall insulation done (where appropriate). The appropriateness is judged by green ticks on the green deal advice report. If you think you're likely to fall under this category it makes sense to get the insulation done first, and then get the GDA. Otherwise you'll have to pay for a second EPC to demonstrate you've installed. This advice wouldn't apply if you wanted to pay for the insulation using a green deal loan. In that case you'd have to get the GDA done first.

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Beemer

BeemerComment left on: 23 January 2014 at 10:10 am

I understand that you can apply for the RHPP before installation and receive a voucher, but surely you need a post install epc which includes the renewable technology that is actually installed, to actually redeem the voucher and  claim theRHPP money. Otherwise you are being paid on what you 'might' install !

Also, as we are so close to the RHI launch and the RHPP monies are paid back anyway - can anyone tell me what the benefit isnow of claiming the RHPP, as it is also my understanding that those who received the RHPP payment will receive their RHI payments 'after' those clients who did not claim the RHPP.

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Jeff B

Jeff BComment left on: 21 January 2014 at 5:07 pm

I am really surprised that no-one else has picked up on the seriousness of this announcement. I would definitely not be recommending that anyone invests in any equipment on the assumption that because it is MCS approved that they will qualify for the RHI payments but rather should wait until this promised definitive list appears. Of course when/where the list will be published we don't know!

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Tasha Kosviner

Tasha KosvinerComment left on: 20 January 2014 at 12:30 pm

Quite right @StuartElmes - solar thermal now added. Well spotted!

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This is still worth pursuing as it effectively brings your last year of RHI into your first year. Which has got to be worth filling in a form or two.

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Jeff B

Jeff BComment left on: 19 January 2014 at 10:49 pm

Announcement on the MCS website 16th January:

"The MCS Helpdesk has been receiving an increasing number of phone calls regarding what products will be eligible for the RHI and whether all MCS products do qualify. Please be aware that not all MCS certified products will be eligible for the domestic RHI and that additional criteria will be applied. A full list of RHI eligible products will be released prior to the launch of the RHI. At this time we are unsure where this list will be published".

What on earth.....you couldn't make it up!

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Stuart Elmes

Stuart Elmes from Comment left on: 18 January 2014 at 8:20 am

Don't forget £600 for solar thermal too!

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