Up to £1,250 for renewable heat under the new Premium Payment Scheme

jojonic

Just announced today the new Premium Payment scheme offers grants of up to £1,250 for renewable heating technologies (heat pumps, biomass, solar thermal etc)

apparently the grants for heat pumps and biomass will be targeted at the properties not on the gas network, whereas the solar thermal grant will be available to everyone. Unfortunately the solar thermal grant is only £300... better than a poke in the eye with a sharp stick though eh?

The grant is being administered by EST and householders can apply from August 1st. The governement has committed £15M to the scheme on a first come first served basis...

My only concern would be if they are doing this to try and get the keen ones to sign up in advance of the Renewable Heat Incentive launch next year, and then offer a lower ongoing payment to these clients after...

More info on links below

Press release from the guardian
EST's page

Not sure if this is even in the right topic, please move if not! :cool:

Pincher

This is worse than the £400 boiler scrappage scheme.

With the boiler scrappage, £400 was roughly the VAT on a typical £2,000+20%=£2,400 boiler replacement. So the government actually spent nothing at all, other than taking down the names of millions of applicants, and then throwing most of them away.

You can't just buy a solar thermal panel and then screw it on the roof. You have to throw away a perfectly good hot water cycilnder and put in a solar compatible (extra coil) one. The solar pump isn't cheap either. Scaffolding costs as well. Basically, I don't expect total cost to be less than £2,500+£500VAT=£3,000. So, George Osborne is £200 up on the deal.

Cardew

Pincher wrote: »

This is worse than the £400 boiler scrappage scheme.

With the boiler scrappage, £400 was roughly the VAT on a typical £2,000+20%=£2,400 boiler replacement. So the government actually spent nothing at all, other than taking down the names of millions of applicants, and then throwing most of them away.

You can't just buy a solar thermal panel and then screw it on the roof. You have to throw away a perfectly good hot water cycilnder and put in a solar compatible (extra coil) one. The solar pump isn't cheap either. Scaffolding costs as well. Basically, I don't expect total cost to be less than £2,500+£500VAT=£3,000. So, George Osborne is £200 up on the deal.

Plus the savings on solar thermal are minimal.

zeupater

Minus .... The VAT rate for appropriately installed renewables is 5%, not 20%, so would George's position really be as stated ......

Then again, this is really only a stopgap to prevent the market freezing up before the eventual RHI introduction, which will seriously effect the payback calculation ...

HTH
Z

Pincher

zeupater wrote: »

Minus .... The VAT rate for appropriately installed renewables is 5%, not 20%, so would George's position really be as stated ......

Ah, you mean one that costs £4,500 + £225 = £4,725 because it's got an MCS certificate and a couple of free leaks in your roof.

The £2,500 thing was buying a kit and doing it with my builder and plumber. Since they are not MCS qualified, I wouldn't get the £300 at all then.

zeupater

Pincher wrote: »

Ah, you mean one that costs £4,500 + £225 = £4,725 because it's got an MCS certificate and a couple of free leaks in your roof.

The £2,500 thing was buying a kit and doing it with my builder and plumber. Since they are not MCS qualified, I wouldn't get the £300 at all then.

Hi

That's about it ... mind you, you should be able to pick up the kit from some sources for around, or below, £1500 before trade discount, so it's really down to how friendly your builder & plumber are ....

I had several quotes for thermal last year and would consider £4k(inc VAT) as being very expensive and uncompetitive, but it doesn't stop installers 'trying it on' ..... If you were to add the RHI £300 incentive to your £2.5k I would expect you wouldn't be far off what you should be able to get it installed for after a little negotiation .....

HTH
Z