Over the last few years, the government has been pushing for households to switch to renewable energy so that the UK can reach the renewable energy targets by 2025.
This article will walk you through the history of the RHI incentive, the process, and what will be replacing the Renewable Heating Incentive when it comes to an end on the 31st March 2022.
The History of Renewable Heating Incentive
The government brought in the Renewable Heating Incentive on the 28th November 2011 to encourage people to invest in renewable energy such as heat pumps, biomass boilers and solar panels.
The RHI incentive came about in replacement of the Low Carbon Building Programme, which provided grants towards the cost of installing domestic microgeneration technologies. The carbon scheme ended in 2010.
In 2015 the government renewed its promise to push for more renewable energy in homes by improving the scheme giving access to more funding, and ensuring that the scheme met the objectives of being affordable, value for money and using technology that will be beneficial in the long run.
When 2020 came around, the government decided to extend the Renewable Heating Incentive another 2 years until March 2022.
It’s important to note that the RHI will end at midnight on 31st March 2022!
What Actually is The Renewable Heating Incentive
Essentially, the renewable heating incentive is a grant that would be paid to you over 7 years for having a renewable energy system running your home. The incentive aims are to promote renewable energy so we can reduce carbon emissions across the UK.
However, not everyone can be part of the scheme. The be considered, you must
Own your own home
Be a landlord
Be building your own home
The scheme is subject to particular renewable energy resources, too, these include
Biomass boilers
Solar water heating
How Much Could I Save with The Renewable Heating Incentive?
The one simple answer everybody wants. But unfortunately, it’s not one straight figure, as it depends.
The amount of money given by the government depends on your personal circumstances. This includes house size, how much heating you use, and the type of renewable energy you install.
Below is a breakdown of the potential savings.
What Will Replace The Renewable Energy Initiative?
As the RHI scheme closes on the 31st March 2022, the government has launched a new scheme - the ‘Clean Heat Grant’.
The Clean Heat Grant will run for 3 years starting in April 2022. The government will grant £5000 to households as part of the Boiler Upgrade Scheme to promote clean heat from technologies such as heat pumps.
Rather than annual payments, the new clean heat scheme could help cover upfront costs of installing renewable energy up to as much as £5000.
If you’re interested in hearing more about how heat pumps could help you save money, contact the Green Energy 4 All team today.