Loans and RHI Scheme, advise

[ash_scotland88]

Thought I'd ask here to see if anyone has an understanding of the Home Energy Scotland Loan scheme and RHI payments before giving them a call tomorrow.

 

First, anybody with experience of HES loans and RHI?
 

Moving into a property without CH or a gas supply, some windows secondary glazed, needs insulation etc

EPC guide is G1.

I've used the RHI calculated that works out as £1300 per year, £9100 over 7years.

 

Now let's keep things simplified and only be interested in an ASHP install for this example.

HES says the maximum loan amount for ASHP is £10,000 (£2,500 loan plus £7,500 cashback) Where there are clauses for cash back, but let's pretend in this instance cashback is received at the full amount. A loan of £10,000 can be taken above 12years.

Is this amount the original loan value?
Am I correct in saying after cash back would the loan amount to £2,500?
So this would become £2,500 over 12years?
 

On a different webpage I've also found this information:
If you install a renewable heating system and apply for Renewable Heat Incentive (RHI) payments you will need to declare any cashback funding. This will be deducted from any eventual RHI payments.

So would this make the RHI payments actually £1,600 over 7years?

I think now I've typed this out it's all made it simplified and easy to answer my own questions.

[Scots Build]

On 11/01/2021 at 12:40, ash_scotland88 said:

First, anybody with experience of HES loans and RHI?
 

Is this amount the original loan value?
Am I correct in saying after cash back would the loan amount to £2,500?
So this would become £2,500 over 12years?
 

So would this make the RHI payments actually £1,600 over 7years?
 

Firstly, likely a bit late for the OP but hopefully some help to others who may come across this thread

 

If you get your cashback, then yes the loan would be just £2500 plus admin fee (currently £37.50)

As the loan amount is lower, you have to pay it back over a shorter period so 5 years instead of 12

 

If you get a HES cashback grant/loan, you are not entitled to RHI so don't waste your time applying