Domestic Renewable Heat Incentive

The UK Government currently have a domestic Renewable Heat Incentive (RHI) scheme, where 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) for householders is designed to drive uptake of renewable heat technologies to cut carbon, help meet renewables targets and help you save money on your heating bills. It is the first incentive of its kind in the world and the UK Government expects the RHI to contribute towards the 2020 ambition of 12% of the UK’s heating coming from renewable sources.

The domestic RHI provides financial support to the owner of the renewable heating system for seven years. Anyone who has installed a heat pump since 15th July 2009 and who meets the scheme eligibility criteria will be able to join the scheme.

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 UK Government website. The eligibility requirements and rules of the scheme are on Ofgem’s website. Ofgem have also published a document of case studies from the domestic RHI for information.

Please note that the information on this page is not an exhaustive list of all the criteria of the domestic RHI scheme.

How do I Qualify?

In order to join the Domestic RHI scheme, the renewable heat technology which you install must heat a single domestic property. The building must also have an Energy Performance Certificate (EPC). The latter is proof that the property is a domestic dwelling.

An EPC provides information about how much energy a home uses, as well as any technology which could make it more energy efficient. You will need an EPC if you plan to sell, rent or buy a property.

Energy regulator Ofgem is responsible for administering the RHI initiative and you can find the application form here.

The RHI scheme is only available in England, Scotland and Wales.

Below are the confirmed figures for RHI payments. These sums will be paid for each kW of ‘renewable heat’ produced by the technology you have installed.

Air Source Heat Pump – 7.63p/kwh (but its expected to rise to 10.18p/kwh in the spring of 2017)
Ground Source Heat Pump – 19.64p/kWh (but its expected to rise to 19.86p/kwh in the spring of 2017)

Example

A domestic property with ASHP and a 25,000kwh/yr heat load and SPF of 3.4 would get £1,300 pa for 7yrs.
A domestic property with GSHP and a 25,000kwh/yr heat load and SPF of 4.0 would get £3,700 pa for 7yrs.

 

Non domestic rate and example – Incentives page

ASHP rate 2.61p/kwhp
GSHP rate 9.09p/kwhp

A commercial building with a heat load of 115,632kwh pa could be eligible £10,510.95 pa for 20yrs

Want more infomation about grants?

For more information you can download a copy of the Domestic Renewable Heat Incentive policy statement.