DECC announced further details on the subsidy for domestic renewable heat yesterday.

The new proposals offer additional support for ground and air-source heat pumps, waste, deep geothermal heat and combined heat and power. Householders will get paid for the heat produced by their installed technology through the Renewable Heat Incentive (RHI).

Under the new plans, they will receive payments for seven years for each kilowatt hour (kWh) of heat produced compared to the property’s expected heat usage.

Payments of 6.9-11.5 pence per kWh will be eligible for air source heat pumps, biomass boilers will receive 5.2-8.7p/kWh, 12.5-17.3p/kWh for ground source heat pumps and solar thermal technologies will get 17.3p/kWh.

Energy and Climate Change Minister Greg Barker said: “We need to revolutionise the way we heat our homes and businesses and move away from expensive fossil fuels, not only to cut carbon but to help meet our renewables targets and save money on bills.

“Our proposals aim to encourage even more uptake of clean green heating in industry and in our businesses. We have also set out our views on long term support for those who invest in low carbon kit in their homes and we look forward to hearing your thoughts.”

The scheme was due to launch this October but the Government confirmed it would be delayed until summer next year. It said this was to ensure correct measures are put in place to control costs. The Government wants to avoid costs spiralling as happened with the solar Feed-in Tariff earlier this year.

DECC hopes the scheme could help drive 380,000 renewable heating installations by 2020.