Cooler days seem far away but homeowners should be sitting up in their deckchairs and taking notice of the Domestic Renewable Heat Incentive figures finally announced by Greg Barker, Minister of State, Department of Energy and Climate Change this week.

The Government backed incentive to encourage homeowners to move away from fossil fuel boilers, into renewable technologies could mean a 7 year payback on the initial investment along with the acknowledged savings on their energy bills.

The Domestic RHI payments, based on the technology and size of boiler are tax free and index linked for a 7 year period.

The rates have been set at 7.3p per kilo-watt hour (kWh) for an Air source Heat Pump; 12.2p for Biomass Boilers; 18.8p for Ground Source Heat Pump and from 19.2p for Solar Thermal systems.

Damian Baker Managing Director of RenEnergy Installations Limited in Blofield Heath welcomed this announcement ’ We have had so many customers wanting to move away from fossil fuels and take onboard our recommendations but confirmation of the RHI has always been just out of reach– now we can help clients upgrade their heating systems and realise the returns on their investments.

We have already contacted a client who replaced their oil boiler with a ground source heat pump in 2011 to let them know that they could be in line for RHI payments to the tune of £12,000 – as you can imagine he was delighted’

Homeowners who had systems installed after the entry date July 15th 2009 can also apply for these payments. ‘We are very pleased with our heat pump; it heats the water and whole house with ease. We have been waiting for the RHI announcement for a long time and these figures mean we will achieve payback in just 7 years.

"Of course renewable heating systems work more effectively in well insulated homes; as such applicants will be obliged to have a Green Deal Assessment prior to application. This is to make sure their homes meet minimum energy efficiency requirements. In most examples the payments will be made on estimations of heat demand utilising the Energy Performance Certificate."

The Department of Energy & Climate Change is working with Ofgem to invite applications in early 2014.