Heat pumps RHI and RHPP grants

When it comes to renewable technology in the UK, heat pumps are firm household favourites. There are two types available to purchase: air source heat pumps and ground source heat pumps. They work by taking environmentally friendly heat from the air or ground and convert it into usable energy for the home.

As such, you won’t be relying on the National Grid for your energy and instead can generate your own free heat, slashing expensive fuel bills throughout the year by more than £600. And with heat pumps having a life expectancy of more than 25 years, there are thousands of pounds to be saved.

And it’s not just savings that you’ll benefit from with heat pumps. With two fantastic Government incentives you can earn with the renewable technology and receive a grant to help cover installation costs too.

The Renewable Heat Incentive

The Renewable Heat Incentive (RHI) is a Government-run scheme set to launch in 2014 for domestic installations.

Effectively the heat pumps RHI will work in a similar way to the feed-in tariff for solar panels. For every unit of heat produced onsite you’ll receive a fixed rate of income.

And with the heat pumps RHI you can earn a fantastic £800 each month. Payments will be quarterly once you register to the scheme, lasting for a total of seven years. And the good news is, installations backdating all the way to 2009 will be eligible to receive payments.

The set rates for both types of heat pump do vary, mainly because of the different installation costs. See below for the heat pumps RHI rates:

  • Air source heat pumps: 7.3p/kWh
  • Ground source heat pumps: 18.8p/kWh

The Renewable Heat Premium Payment

Want to install heat pumps to generate energy for your home, but worried the installation costs could be too expensive? Well, with Government grants under the Renewable Heat Premium Payment (RHPP) scheme the burden is somewhat lifted. This will help to save a great deal on your installation costs.

For heat pumps, the following RHPP grants apply:

  • Air source heat pumps: £1,300
  • Ground source heat pumps: £2,300

There are certain qualifying criteria that need to be met to receive the grants though and you’ll need to be a homeowner or have the landlord’s permission. The main stumbling block is ensuring adequate insulation in your home, which includes loft lagging of 250mm and wall cavity insulation where possible.

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