Air Source Heat Pump Grants from the Renewable Heat Incentive are not upfront grants which help with the cost of installation.
Instead, the homeowner will pay for the installation and claim back quarterly incentive payments for 7 years based on the RHI tariff at the time your application.
Before your air source heat pump is installed you will need an up to date EPC (Energy Performance Certificate) for your home. This will show your home’s energy demand for both heating and hot water, measured in kilowatt hours (kWh).
The current (to 30th September 2019) RHI tariff to install air source heat pumps under the RHI is 10.71 pence per kWh. This means that if your home had a combined heating and hot water energy demand of 15,000 kWh per year, your gross annual financial RHI incentive would be £1,606.50 (15,000 x 10.71p), or £410 .62 per quarter. In practice however, this is reduced by the Seasonal Performance Factor* for the particular air source heat pump you install.
Over 7 years, the total amount payable would be a minimum of £11,245.50. However, in practice it will be even more than this because your RHI payments will increase by the CPI (Consumer Price Index) on 1st April each year.
The RHI tariff to install air source heat pumps is reviewed quarterly by BEIS (Government Department for Business, Energy and Industrial Strategy).
BEIS has produced a RHI calculator so that potential applicants can estimate their RHI payments prior to deciding whether to install an air source heat pump. The RHI calculator is easy to use and can be found HERE.
*Seasonal Performance Factor.
The RHI pays tariffs based on the deemed heat demand for your home less the amount of electricity your air source heat pump needs to operate. In doing this, you are only rewarded for the net amount of renewable energy generated. If your air source heat pump operates at 300% efficiency (i.e., it generates 3 times as much energy as it uses), your gross RHI tariff will be reduced by about one third.