A New Era in Home Heating? Renewable Heat Premium Payment

The Government’s has today launched a new £15 million ‘Renewable Heat Premium Payment’ scheme. The initiative will open for applications on 1 August this year until March 2012. It is claimed it will support up to 25,000 installations.

The scheme will be mainly focused at around 4 million households in Great Britain not heated by mains gas. These residents 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 to keep warm.

Climate Change Minister Greg Barker said:

Today starts a new era in home heating because we’re making it more economical for people to go green by providing discounts off the cost of eco heaters.

This should be great news for people who are reliant on expensive oil or electric heating as the Premium Payment scheme is really aimed at them.

Householders will need to ensure they have basic energy efficiency measures in place before applying for the grants, which will be available on a first come first served basis.

From 1 August, grants for the following technologies will be available:

• Ground Source Heat Pump – £1250 grant (for homes without mains gas heating)

• Biomass boiler – £950 grant (for homes without mains gas heating)

• Air source heat pump – £850 grant (for homes without mains gas heating)

• Solar thermal hot water panels – £300 grant (available to all households regardless of the type of heating system used)

Anwar Harland-Khan, CEO of Sustain Worldwide, a membership organisation of developers and architects, said: “The Renewal Heat Premium Payment scheme is a welcome initiative but in truth it’s a stop gap before the Renewal Heat Incentive scheme and the Green Deal are introduced in 2012.

“However, for anyone considering installing solar thermal before next winter why not grab what is effectively a £300 discount on the average £3,000-£5,000 purchase and installation cost?

The Premium Payment scheme will be run by the Energy Saving Trust. Householders can call 0800 512 012 or visit www.energysavingtrust.org.uk/RHPP. A factsheet on the Premium Payment scheme can be found here.

Gordon Miller is sustainability & communications director of Sustain Worldwide . He writes for The Financial Times and The Sunday Times and founded eco homes website whatgreenhome.com and local energy and awareness social enterprise The High Barnet Green Home Zone.