Domestic Renewable Heat Incentive
The Renewable Heat Incentive (RHI) is a Government scheme set up to encourage the increased uptake of renewable heat among householders, communities and businesses through financial incentives.
The Domestic scheme is open to homeowners and registered social and private landlords. Those with eligible installations will receive quarterly RHI payments over 7 years towards the cost of their renewable heating system.
Although payments are fixed for 7 years, tariffs are still subject to annual adjustments in line with the Retail Price Index (RPI).
Eligible outputs of a domestic renewable heating system include space and water heating.
In order to be eligible for the scheme, a Green Deal Assessment on the property is required before application. This assessment will be used to calculate RHI payments and also to ensure that basic thermal efficiency measures have been installed within the property. The technology installed must also be MCS certified along with the company that installed the technology.
Biomass and Heat Pumps payments will be calculated using annual heat usage estimations from the property’s Energy Performance Certificate (EPC), included in the mandatory Green Deal Assessment. Solar Thermal payments will be based on hot water usage only using a MCS calculator provided by the installer. The amount paid will be determined by multiplying the eligible metered heat reading by the relevant tariff rate.
The table below details the domestic RHI tariff based on the different eligible technologies. Tariffs for new applicants can be subject to cuts following the expenditure forecasts published quarterly by DECC.
|Technology||Tariff Rate from 1st January 2016|
|Solar Thermal Hot Water||19.51p/kWh|
|Air Source Heat Pump||7.42p/kWh|
|Ground Source/Water Source Heat Pump||19.1p/kWh|
Estimate the income and savings you could receive from an eligible renewable heating system with DECC’s online Renewable Heat Incentive Calculator
Contact us to discuss different renewable heating technologies and find out which would be most suitable for your property.
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