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Published: 15/07/2013

Heat Pump Government RHI Funding Confirmed

Government  Announcement – Huge Guaranteed Financial Incentives For Installing A Heat Pump To Replace Your Conventional Boiler-

At long last the Government (DECC – Dept of Energy & Climate Change) announced this week the long awaited details of the Renewable Heat Incentive (RHI) scheme – financial incentives available to those installing heat pumps in domestic properties. These disbursements will run into thousands of pounds with payments made to the owners for a period of 7 years for each kilowatt hour (kWhr) of renewable heat that the property is deemed to require and which is delivered by the heat pump: (read more below)
Payments under the RHI will commence in the Spring of 2014 and will be available to owners of heat pumps installed after 15th July 2009, provided they meet the eligibility criteria. These criteria are essentially that the heat pump is installed by an MCS qualified installer, such as the Reina Group, and that the property meets certain minimum insulation standards.

The payment tariffs have been set at 7.3p /kWhr for air source heat pumps and 18.8p/kWhr for ground source, and will continue for a period of seven years. Each year the rates will be increased in line with the Retail Prices Index (RPI).

As with the Feed in Tariff for solar PV , the level of payment is likely to drop once the uptake reaches a certain level and the government expect to make a further announcement in the Autumn on this subject.

To guarantee receiving the highest available tariff it is vital to take action now and get your installation registered as soon as possible.

The new RHI for householders is designed to drive forward uptake of renewable heat technologies in homes across Great Britain to cut carbon emissions, help meet renewable targets and save money on bills. The scheme is a world first, and has been up and running for non domestic sector since Nov 2011.

The following examples illustrate the potential payments available for differing sized properties for both Air & Ground Source Heat Pumps:

Nos of BedsTech.Assumed Heat
Demand (kWhr)
Heat Emitter
Guide Rating
TariffTotal    –    7yr Payback
3ASHP150005*3.415000  x


105887.3p10588 x 7.3p x 7


5ASHP250005*3.425000  x


176477.3p17647 x 7.3px 7


3GSHP150005*4.115000  x


1134118.811341 x 18.8 x 7yrs


5GSHP250005*4.125000  x


1890218.818902 x 18.8 x 7yrs

= £24,875.00

If you would like to know more about a heat pump installation and how it may benefit you, then please call the office on 01303 248648