Merchants PTS and City Plumbing Supplies are launching a funding framework for renewable heating, which they believe could result in a substantial surge in work for contractors from social housing providers and could provide 40-100 per cent of heat pump installation costs.
The HeatRHIght scheme, launching at the Ecobuild show next week, gives social housing providers an upfront lump sum that contributes to the capital cost of retrofitting air and ground source heat pumps.
Since there are more than four million social homes across the UK, HeatRHIght can offer significant new opportunities for skilled installers, the merchants say, by removing financial barriers that have historically prevented registered providers from investing in renewable heating.
The scheme works by trading seven years of Renewable Heat Incentive payments in exchange for an upfront lump sum. The size of any payment will depend on the technology used and heat demand required, the firms stress, but will typically provide between 40 per cent and 100 per cent of the installation costs. The scheme has been structured according to specialist legal advice to ensure full compliance with the RHI.
Andrew Harrison, Deputy CEO of the Plumbing & Heating Division at parent company Travis Perkins, said:
“We know social housing providers want effective, sustainable heating, but they don’t always have the capital they need. HeatRHIght solves that problem. With funding available upfront, clients can commission retrofit projects with confidence, which will introduce a whole new level of demand for renewables installers.”