Is there financial support for heat pumps?

The Renewable Heat Incentive (RHI) offers support for domestic and non-domestic installations.

Support for domestic heat pump installations

Until Spring 2014, support for domestic heat pumps will be through Renewable Heat Premium Payment (RHPP) scheme, giving grants of £850 for an air-to-water heat pump system and £1,250 for a ground or water source heat pump. Only houses without mains gas will be eligible - for example those looking to replace oil, liquid gas, solid fuel or direct electric heating.

From Summer 2014, heat pump systems will be supported through tariff payments as part of the second domestic phase of the RHI. Details for this are still unknown, but DECC have announced that this phase will be open for all eligible (see below) installations installed since 15 July 2009, including (but not limited to) those who received Premium Payments.

For more information on RHI support for domestic installations, please see our page How will the Renewable Heat Incentive and the RHI Premium Payment support domestic installations?

Support for non-domestic heat pump installations

Non-domestic ground- or water source heat pump systems, e.g. for a B&B, a pub, a public swimming pool or industrial installations, will receive an RHI tariff payment for every unit of heat generated.

Note: Air Source Heat Pumps are currently not supported through non-domestic RHI tariffs!

For ground- or water source heat pump systems (as well as deep geothermal systems) smaller than 100kWth the tariff is 4.3 pence per kWh.
For systems of 100kWth or above the RHI tariff is 3p/kWh.

To illustrate this: Say a 10kW ground source heat pump provides 10,000kWh per year for a small educational or commercial building. The RHI tariff payment will be 10,000kWh x 4.3p/kWh = £430 per year.

Tariffs are guaranteed over a 20 year lifetime and will be adjusted with inflation.

All heat generated will have to be metered using heat meters.

For information on RHI support for non-domestic installations, please see our page  How will the Renewable Heat Incentive support non-domestic installations?

Eligibility for support

To be eligible, both the equipment and the installer for domestic and small (<45kW) non-domestic heat pump systems will have to be accredited under the Microgeneration Certification Scheme (MCS). You can use the MCS website www.microgenerationcertification.org to find accredited installers and products.

Contacts

DECC Renewable Heat Incentive (RHI) page - http://www.decc.gov.uk/rhi -
  Details of the proposed Renewable Heat Incentive Scheme, with downloadable documents
Energy Saving Trust - http://www.est.org.uk/ - 0800 512 012
  Gives advice on saving energy in the home and local funding opportunities for renewable energy.
Microgeneration Certification Scheme - http://www.microgenerationcertification.org/ - 020 7090 1082
  The Microgeneration Certification Scheme (MCS) certifies microgeneration products and installers. MCS accreditation is required for Feed-in Tariff and Renewable Heat Incentive support.

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