RHI Changes- What you Need to Know

Make sure you aren’t left out in the cold by knowing how the RHI works, as well as when you need to get your application submitted by.

rhi money

The government’s Renewable Heating Incentive is changing. From spring 2014, it will be accepting applications for funding the installation of renewable heating systems in domestic properties. Make sure you aren’t left out in the cold by knowing the benefits of the RHI, as well as when you need to get your application submitted by.

In December 2013, the Department for Energy and Climate Change outlined the tariffs which would be put in place under the new system and who would be eligible. They revealed that, through a legacy application, homeowners who have had a renewable heating system installed since 15th July 2009 would also be eligible to benefit from a government grant to help fund their installation- good news for those of you who were quick off the mark! However, it is important that those wishing to put forward a legacy application act quickly, as their applications will only be accepted for the first year of the RHI scheme.

It is important to stay up to date on what needs to be done and when, if you are to benefit from the RHI, and that you allow plenty of time to act. Applications for RHI on domestic installations will be processed in the following order:

  • Applications for installations not part funded by the renewable heat payment premium (spring 2014)

  • Applications installations part funded by the renewable heat payment premium (summer 2014)

  • Legacy installations (autumn 2014)

It is essential that you don’t miss these deadlines, or you’ll miss out, causing your costs to be driven up, which is especially important if you are working to a tight budget.

 Varying tariffs

 Although the government scheme hopes to help homeowners as much as possible, there is a chance that the stated tariffs offered by the RHI could decrease per quarter throughout the year if the scheme runs over budget. This is possible if a higher number of applications are received than have been anticipated. If a certain number of applications are reached, the tariff rates could fall by 10%, and potentially 20% if enough people out applications forward. It is important, then, to keep an eye on these figures so that you know if the tariff you expect to receive is about to decrease. Information on the levels of applications received, and any impact they may have on tariffs are available at gov.uk

Image sourced: Images Money

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