Funding – Renewable Heat Incentive

Renewable Heat Incentive

What is the RHI?

The Renewable Heat Incentive (RHI) is a Government backed scheme, introduced to encourage the installation of heat generating sustainable energy systems, such as Biomass, Heat Pumps and Solar Thermal systems.

What could I earn using RHI?

RHI cash payments are made quarterly over seven years for domestic installations and over 20 yeasr, for commercial installations. 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.

Who can apply for RHI?

  • Owner-occupiers, self-builders, private landlords and registered providers of Social Housing who have installed an eligible technology since 15th July 2009 can apply for RHI support (provided they meet eligibility criteria).
  • Single domestic dwellings are covered.
  • RHI support is not available to new build properties (other than self-build projects).

How do I apply for RHI?

You can apply for RHI via Ofgem’s website . Providing you have all the relevant information to hand and your application does not require a manual review, you should receive an immediate decision. To check if your application will need manual review, visit Ofgem’s webite.

If you are unable to apply online then you can contact Ofgem via their Domestic RHI Applicant Support Centre on 0300 003 0744 Monday to Friday from 08:00 to 19:00 or by emailing: DomesticRHI@ofgem.gov.uk.

To apply you will need

• MCS installation certificate number for the heating system
• Energy Performance Certificate (EPC) number
• Green Deal advice report number (unless you are a self-builder)
• Bank details

If you received a grant from Government or public funds you will also need to provide details of:

• The amount you were paid
• The date you were paid
• Figures regarding the cost of the installation

Please also note:

  • If you are applying for RHI for heat pumps you installed after the scheme launched you will also need the Seasonal Performance Factor (SPF)
  • If you are applying for RHI for systems requiring metering will also need the Installer Metering Questions form.
  • If you installed your heating system between 15th July 2009 and 9th April 2014, you are a ‘legacy applicant’. You can still apply (provided you meet the eligibility criteria) but you will have to apply following the phased timetable below.
Applicant type Dates you can apply
No RHPP claimed and system commissioned before 9 April 2014 Any time to 8 April 2015
Applied for RHPP before 20 May 2013 From 9 July 2014 – 8 April 2015
Applied for RHPP on/after 20 May 2013 From 9 October 2014 – 8 April 2015
Installed eligible system on/after 9 April 2014 Up to one year from commissioning date

Tariffs

The table below summarises the latest tariffs available for each technology:

Air source heat pump Biomass Ground source heat pump Solar thermal
Tariff (p/k Wh renewable heat)
(Applications submitted between 1 April 2015 and 30 June 2015 incl.)
7.42p 8.93p 19.10p 19.51p
Tariff (p/k Wh renewable heat)
(Applications submitted between 1 July 2015 and 30 Sept. 2015 incl.)
7.42p 7.14p 19.10p 19.51p

Tariff rates updated – 29 May 2015

  • 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.

Metering

Most domestic systems payments will be based on an estimated heat output (’deeming’). In some cases, meters are required to determine the technology’s heat output. Ofgem’s factsheet ‘Do I need metering for the Domestic Renewable Heat Incentive (RHI)?’ has further details.

The Metering and Monitoring Service Package is an optional feature you could choose to buy from your installer when installing a renewable heating system to provide peace of mind the installation is working as expected; enable the installer to continually improve performance where possible; and to diagnose common problems if they occur.

An optional additional payment will potentially be available to incentivise uptake of these packages and are available on a first come, first served basis to 2,500 applicants in the first year of the scheme; biomass systems (£200/year) and heat pump systems (£230/year).