The Domestic Renewable Heat Incentive Scheme is launched today.

The long awaited domestic RHI scheme has been approved in Parliament and is launched today.  The news item is here. 

Minister for Energy Greg Barker and Claire Perry MP with a Grants of Devizes biomass boiler.

It is described, rather unsensationally, as a boiler replacement scheme.   However, built into the scheme is the cost of borrowing money and the 'hassle' factor as well as the installation cost.  So, for example, if an oil boiler, using say 1,500 litres of oil, is replaced by a wood pellet boiler, the RHI payments would be something in the order of £1,800 pa tax free for 7 years, which would be adjusted for inflation each year.  The scheme also covers solar thermal panels.

The following is from the press release:

The technologies currently covered by the scheme are:

• Biomass heating systems, which burn fuel such as wood pellets, chips or logs to provide central heating and hot water in a home. Biomass-only boilers are designed to provide heating using a ‘wet system’ (eg through radiators) and provide hot water. Pellet stoves with integrated boilers are designed to burn only wood pellets and can heat the room they are in directly, as well as provide heat to the rest of the home using a ‘wet system’ (eg through radiators) and provide hot water.

• Ground or water source heat pumps, which extract heat from the ground or water. This heat can then be used to provide heating and/or hot water in a home.

• Air to water heat pumps, which absorb heat from the outside air. This heat can then be used to provide heating and/or hot water in a home.

• Solar thermal panels, which collect heat from the sun and use it to heat up water which is stored in a hot water cylinder. The two types of panels that are eligible are evacuated tube panels and liquid-filled flat plate panels.