What's best about renewable energy, is the
government are paying for it. It's not small money, either.
Under the UK Government’s domestic Renewable Heat Incentive (RHI) scheme, you could receive quarterly cash payments over seven years if you install or have already installed an eligible renewable heating technology.
About the Renewable Heat Incentive (RHI)
The Renewable Heat Incentive (RHI) is a UK Government scheme set up to encourage uptake of renewable heat technologies amongst householders, communities and businesses through financial incentives. It is the first of its kind in the world and the UK Government expects the RHI to contribute towards the 2020 ambition of 12% of heating coming from renewable sources.
In 2012, phase one of the Renewable Heat Incentive (RHI) launched to support the UK’s non-domestic sector.
The domestic RHI, was launched on 9th April 2014 and provides financial support to the owner of the renewable heating system for seven years. The scheme covers England, Wales and Scotland and is targeted at - but not limited to - off-gas households.
An equivalent RHI scheme now also covers Northern Ireland. Find out more about the Renewable Heat Incentive in Northern Ireland.
The UK Government's Department of Energy and Climate Change (DECC) makes key policy decisions and energy regulator Ofgem E-Serve administers the scheme. Policy documents can be found on the at the UK Government website and eligibility requirements and rules of the scheme are on Ofgem's website.
Changes to domestic RHI eligibility
On 5 February 2015 the Department of Energy and Climate Change (DECC) announced their intention to make a number of small changes to the domestic RHI. These included:
• Removing the requirement for a Green Deal Assessment for social landlords
• Making cooker stoves eligible
• Making high temperature heat pumps eligible
• Reflecting updated MCS Standards in the scheme
• Clarifying the scheme rules around properties made up of more than one building
• Other small clarifications to ensure the original policy intent is being delivered.
Full details of the changes can be found on DECC’s website here.
What could I earn using RHI?
RHI cash payments are made quarterly over seven years. The amount you receive will depend on a number of factors - including the technology you install, the latest tariffs available for each technology and - in some cases - metering.
You can estimate how much money you could earn through RHI using the Department of Energy and Climate Change (DECC)’s RHI payment calculator.
Please note there are some elements that could affect RHI payment.
What technologies can I claim RHI support for?
Biomass (wood fuelled) boilers
Biomass pellet stoves with integrated boilers providing space heating
Ground to water heat pumps
Air to water heat pumps
Solar thermal panels (flat plate or evacuated tube only) providing hot water for your home
Air to air heat pumps, all log stoves, pellet stoves without back boilers and hybrid PVT are not supported by RHI.
The table below summarises the latest tariffs available for each technology:
These tariffs have been set by the UK Government at a level designed to compensate for the difference between costs of installing and operating renewable heating systems and fossil fuel systems, including non-financial costs such as disruption, on the basis of 20 years of heat produced. Fossil fuel costs used are those for off-gas households.
Ofgem will make payments quarterly for seven years. Normally the heat required to heat the property will be deemed (estimated) and payments will be based on this amount.
Biomass - renewable heat generated by biomass will be based on an estimated heat demand from an EPC
Heat pumps - renewable heat generated by heat pumps will be based on an estimate of the heat demand from an EPC combined with an estimate of the heat pump's efficiency
Solar thermal systems - renewable heat generated by solar thermal systems will be based on the estimate of system performance completed as part of a Microgeneration Certification Scheme (MCS) installation.
Elements affecting payment
Once you are receiving domestic Domestic RHI payments, the rate you get will change annually in accordance with the Retail Price Index (RPI).
The RHI scheme uses a 'degression' system designed to manage the scheme budget available for the domestic RHI. From time to time, the tariff for a technology will be reduced (for new applicants only) if the total amount being claimed in total for that technology reaches a certain level. Anyone who is already claiming domestic RHI will not have their tariffs reduced through degression.
If you have already received a grant from the Renewable Heat Premium Payment (RHPP) scheme, Energy Saving Scotland home renewables grant scheme, Scottish Communities and Householder Renewables Initiative (SCHRI) or other grants from Government or public funds (such as the RHPP), then the amount received will be taken into account when calculating your domestic RHI payments.
(source: - March, 2015).