DalesRenewables
Electrical, Heating & Plumbing Contractors
Renewable Heat Incentive (RHI)
The Domestic RHI Scheme Explained
The Renewable Heat Incentive (RHI) is the world’s first long-term financial support programme for renewable heat.
Launched in November 2011 with a scheme for the non-domestic sector that provides payments to industry, businesses and public sector
organisations. The details of the domestic Renewable Heat Incentive (RHI) were announced by the UK Government on 12 July 2013. The main details
of the scheme which were announced, and which are subject to final clarification and parliamentary approval, are listed on this page. The domestic
RHI is a UK Government financial support scheme for renewable heat, targeted at, but not limited to, off gas grid households. The scheme covers
England, Wales and Scotland only and will cover single domestic dwellings.
Domestic RHI Scheme Criteria
It will be open to owner-occupiers, private landlords, Registered Providers of Social Housing, third party owners of heating systems and self-builders. It
will not be open to new build properties other than self-build. It will be open to anyone in these groups who installed an eligible technology since 15th
July 2009, provided they meet the scheme criteria. Further details on the phasing will be provided by Ofgem prior to launch. The scheme will support
air source heat pumps (ASHP), biomass systems, ground source heat pumps (GSHP) and solar thermal technologies.
Biomass - the renewable heat generated will be based on an estimated figure of heat demand from an Energy Performance Certificate (EPC).
Heat pumps - the renewable heat generated 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 - the renewable heat generated will be based on the estimate of system performance completed as part of an Microgeneration
Certification Scheme (MCS) installation.
Domestic RHI Tariffs and Payments
The financial support will be paid at a set rate per unit of renewable heat produced (kilowatt hour or kWh), for seven years, to the owner of the heating
system. To help improve performance of renewable heating systems, there will be an extra incentive for applicants who install metering and monitoring
service packages, of £230 per year for heat pumps and £200 per year for biomass boilers. Tariffs will change annually in line with the Retail Price
Index (RPI). The Department of Energy & Climate Change (DECC) intend to introduce a system of degression to control the costs of the scheme. This
is where tariffs are reduced over time for new applications to the scheme.
The Domestic
Renewable Heat Incentive
(RHI)
Case
Studies
