The Renewable Heat Premium Payment (RHPP) scheme, which gives money off renewable technologies including; Solar Thermal, Biomass & Heat Pumps, will be extended from April 2nd this year and will be have £10m more funding than the existing RHPP scheme.
The additional funding will take the RHPP further including an £8m competition for communities to apply for grants to encourage community groups to install renewable heating. This is in addition to the voucher scheme which will beprimarily focused at approximately 4 million homes in Great Britain which are not heated by mains gas, who have to rely on higher carbon forms of heating which also tend to be more expensive than gas such as heating oil and electric fires. There will also be a £10m competition for social landlords.
This announcement is exciting news for Renewable Installers as it fills the gap until the introduction of the Renewable Heat Incentive and provides consumers with an extra incentive to save on their heating bills now rather than waiting.
Climate Change Minister Greg Barker said:
“The new Renewable Heat Premium Payment scheme will be bigger and better than the original.
“We’re increasing the budget from £15m to £25m, for the first time we’re including community schemes and there’ll be more social housing schemes that can benefit. Those people who are reliant on expensive oil or electric heating should consider applying to the Premium Payment scheme to cut their fuel bills in the long term.
“Generating heat from renewables will not just cut carbon emissions, it will also help create a market in developing, selling and installing kit like solar thermal panels or heat pumps.”
The scheme will continue to be administered by the Energy Saving Trust.
Karen Lawrence, Energy Saving Trust Director of Delivery, said:
"Our aim is to empower householders by giving them the right tools and advice to help them reduce both their energy usage and bills.
"Without a doubt, one of the main barriers that prevents people from taking the plunge is the up-front capital cost. The announcement of the second phase of the government's Renewable Heat Premium Payment (RHPP) scheme not only offers homeowners help with the initial costs, but it also provides them with access to heat technologies that can help them to reduce their energy bills, year on year.
"We are encouraged by the interest in the first phase of the schemes - particularly the social landlord scheme - and look forward to building on this."
^ Source - DECC