Grants

The UK is the first country in the world to agree to legally binding targets set by the EU to reduce its carbon emmissions. To help achieve these targets, the Governments Department of Energy and Climate Change (DECC) have introduced two grants.

The first is the Renewable Heat Premium Payment (RHPP) which is a one-off payment to help subsidise the cost of installation. The second is the Renewable Heat Incentive (RHI) which is an annual grant guaranteed for 20 years offering not only a very quick payback on your investment, but also a profitable return.

Renewable Heat Premium Payment

Are you aware of the Renewable Heat Premium Payment?

The RHPP came into effect on August 1st and means that homeowners in England, Wales and Scotland whose primary property is already occupied, off the main gas grid and is their primary residence, can apply for grants of £1,250 towards the cost of Ground Source Heat Pumps and £850 towards Air Source Heat Pumps.

Importantly, this is not an alternative to the Renewable Heat Incentive but is in addition to it.

To qualify for the grants, the product and installer must be MCS accredited (Ice Energy and their products fully meet this criteria). Additionally, basic insulation must have been installed where practicable (loft insulation to 250mm, cavity wall insulation). Ice Energy will offer to carry out these insulation upgrades for FREE if they are necessary upon purchasing a heat pump from us.

Having vigorously championed the RHI, Ice Energy is delighted by the introduction of the RHPP which we view as an important initial step to support people who want to install renewable heat technologies.

To reflect this and as part of our continued commitment to offer the very best opportunities to our customers, for a limited period we pledge to match the level of RHPP funding on offer. This means that if you order a heat pump today, you will effectively double up your entitlement receiving a discount of between £850 and £1,250 on your quotation as well as being able to apply for the RHPP grant.

Please note that there is a limited budget for the RHPP Grants which are issued on a first come first served basis so we strongly recommend you act as quickly as possible to guarantee your payment as well as your matched funding from Ice Energy.  Although the Government will be giving priority to off-gas properties, Ice Energy funding will be available to everyone.

Renewable Heat Incentive

So, you’ve installed your heat pump and you are benefiting from the lower running costs, reduced cost of maintenance, knowing you have reduced your carbon footprint and of course you are even more pleased because you had the initial cost of this subsidized by the RHPP. It couldn’t get any better right…..? Wrong!

In October 2010 the government confirmed that the long awaited and worlds first Renewable Heat Incentive will be launched! Phase one will be underway shortly for non-domestic properties who use an eligible renewable technology to provide heating rather than a conventional fossil fuel system and Phase Two is scheduled to begin from October 2012 for the domestic market.

The scheme aims to increase the uptake of customers switching to renewable technologies that at the moment are put off by the payback period and initial outlay cost, therefore lowering the UK’s carbon emissions and helping it hit the targets set by the EU. The amount paid by the proposed incentive scheme depends on how much heat your house requires to give it a reasonable level of comfort.

The following table gives a very rough indication of the level of grant you might expect. These payments are likely to be guaranteed for 20 years although the final details are yet to be announced. The Department of Energy and Climate Change (DECC) have indicated that these will be released before the end of the year.

  • 3 bed terraced – approx £700pa (Total £12K-16K)
  • 3 bed semidetached house – approx £1000pa (Total £18K-23K)
  • 5 bed large detached – approx £2000pa (Total £57K)

Both Ground and Air Source Heat Pumps have been confirmed as being included in the scheme.

More information can be found here.