Renewable Heat Premium Payment increases to help boost industry while another government scheme is delayed

The government has doubled subsidies for renewable heat schemes in an effort to support the industry while it waits for the Renewable Heat Incentive to be introduced.

The Renewable Heat Premium Payment, which gives people who install renewable heat technologies in their buildings a cash bonus to encourage uptake, has been doubled for most technologies.

The scheme was extended in March this year to run until March 2014, at the same time as the government delayed the launch of the domestic Renewable Heat Incentive, which pays subsidies based on the amount of heat a system generates.

The payment for installing a ground source heat pump has risen from 拢1250 to 拢2,300. The bonuses for installing biomass boiler has now risen to 拢2,000, from 拢950; air source heat pump subsidies have risen to 拢1,300, from 拢850; and solar thermal systems now receive 拢600, up from 拢300.

Energy minister Greg Barker said: 鈥淭his time limited, big increase in the value of vouchers for hardworking people who want to do something positive to install money saving green heating in their homes, should be a real boost for this growing green sector.鈥

Stuart Elmes, chair of the Solar Trade Association鈥檚 thermal working group, said it was 鈥渇antastic鈥 news.

He added: 鈥淭his announcement is, at last, a tangible demonstration of government鈥檚 oft-proclaimed commitment to domestic renewable heat technologies. Many within industry had wavered in their belief that they would ever see a domestic RHI.鈥