The Renewable Heat Incentive (RHI) is the government scheme to encourage the shift to low carbon and renewable heat technologies. It commences in spring 2014. The final details of the scheme were announced on the 12th July. "Householders could get paid hundreds of pounds a year for heat generated by solar thermal panels, biomass boilers and heat pumps," Energy and Climate Change Minister Greg Barker confirmed .

The scheme is for a system that heats a single domestic property. It is open to house owners who have installed eligible systems since 15th July 2009 (Legacy applicants) and new applicants.

The details below are a summary of some of the requirements. Please go to the Government's website for the complete details.

What are the Eligible technologies?

The technologies eligible for the RHI are air to water source heat pumps, ground and water source heat pumps, solar thermal panels, biomass boilers and wood pellet stoves with a back boiler which meet 99% of the peak space heating requirements. The equipment and the installer must be MCS approved.

What are the Tariffs?

How long will the RHI be paid?

The RHI will be paid for seven years. Payments will be quarterly in arrears by Ofgem. The payments rise annually in line with the Retail Price Index (RPI). Whilst payable for seven years, the payments have been calculated over the expected 20 year life of the systems.

Will the RHI rates Change?

A digression scheme similar to the one used in the solar PV feed-in tariff scheme will be applied. Formal reviews are set for 2015 and 2017, but the government reserve the right to initiate a review at any time.

How is the RHI Payment calculated?

The RHI is paid per KWH of renewable heat generated by the system. The amount of renewable heat generated by the system will be deemed. This is an estimate of the property's expected annual heat usage. The deemed amount is multiplied by the tariff rate to calculate the annual payments. The deemed heat use of a property will be calculated after the installation of any required energy efficiency measures specified as part of a Green Deal Assessment.

What are the Energy Efficiency Requirements?

Everyone will have to have a Green Deal Assessment. This records the energy performance of the property and gives a list of measures which will improve the property's energy efficiency. If loft and/or cavity wall insulation are recommended, then these will have to be installed before applying for the RHI. Installing such measures is the best way to reduce a property's heating requirements and will result in a smaller heating system being required.

Will a Meter have to be installed?

All installations have to be meter ready so that the Department of Energy and Climate Change can check its assumptions about fuel bill savings and renewable energy generation by testing selected installations with their meters.

For biomass and heat pump installations a meter will be required if the renewable heating system is installed alongside an existing fossil fuel system. In this case the RHI payments will be based on actual renewable heat delivered rather than deemed.

Is there any funding available to help with the initial costs?

Installations before 31st March 2014, may be eligible for the Renewable Heat Premium Payment (RHPP) as follows:

Air Source Heat Pump £1300

Ground Source Heat Pump £2300

Biomass £2000

Solar Thermal £600

However, any RHPP will be deducted from the RHI payments made over the seven years.