Renewable Heat Incentive

Renewable Technology Financial Support

What is the Domestic Renewable Heat Incentive (RHI)?

The Domestic Renewable Heat Incentive (Domestic RHI) is a government financial incentive to promote the use of renewable heat. Switching to heating systems that use eligible energy sources can help the UK reduce its carbon emissions and meet its renewable energy targets.

People who join the scheme and stick to its rules receive quarterly payments for seven years for the amount of clean, green renewable heat it’s estimated their system produces.

Since opening in April 2014, the scheme has already seen thousands of people successfully join and receive payments.

Two schemes: Domestic and Non-Domestic

The Renewable Heat Incentive has two schemes - Domestic and Non-Domestic. They have separate tariffs, joining conditions, rules, and application processes. You can only apply to one of the schemes. To decide which is for you, have a look at the Ofgem factsheet The Renewable Heat Incentive – Domestic or Non-Domestic.

RHI ELIGIBILITY REQUIREMENTS

The scheme is open to anyone who can meet the joining requirements. It’s for households both off and on the gas grid.

• owner-occupiers, self-builders, private landlords, and registered providers of Social Housing who have installed an eligible technology can apply for RHI support (provided they meet eligibility criteria).

• single domestic dwellings are covered.

• RHI support is not usually available to new build properties (other than self-build projects).

technologies covered

Before starting any works, we suggest checking the Ofgem guide for applicants to see whether the system you wish to install is eligible for RHI payments.

To be eligible for RHI payments all renewable technologies must be:

• listed as a Microgeneration Certification Scheme (MCS) certified product

• issued with a MCS certificate

The MCS website has full details of MCS-certified products and MCS-certified installers.

Technologies included are:

• 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

• water source heat pumps can potentially be eligible for the domestic RHI – they are included in the definition of a ground source heat pump

• certain cooker stoves and high-temperature heat pumps may also be eligible

You must apply to the domestic RHI scheme within one year of the commissioning date of your system.

Further guidance on domestic RHI eligibility criteria can also be found on Ofgem’s site.

The domestic RHI does not support air to air heat pumps, log stoves, pellet stoves without back boilers, and hybrid photovoltaic thermal hybrid solar collectors (PVT).

APPLYING FOR DOMESTIC RHI

The scheme will remain open to applications until 31 March 2022 and you can apply via Ofgem’s website. You should receive an immediate decision providing you have all the relevant information to hand and your application doesn’t need to be manually reviewed.

If you are unable to apply online, contact Ofgem’s Domestic RHI Applicant Support Centre on 0300 003 0744 Monday to Friday 9 am-5 pm or email: domesticRHI@ofgem.gov.uk.

RHI TARIFFS

The RHI tariffs are 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, based on 20 years of heat produced. Fossil fuel costs used are those for off-gas households.

• Ofgem will make payments on a quarterly basis for seven years. Normally the heat required to heat the property is deemed (estimated) and payments 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 installation

Metering

There are two types of metering that can be required under the domestic RHI scheme: metering for payment and metering for performance.

Metering for payment

Most domestic systems payments will be based on an estimated heat output (‘deeming’) but in some cases, Ofgem may base payments from the metered output. The most common scenarios for this requirement are:

• you have ‘back-up’ heating or a heating system designed to only partially heat the property

• the property is occupied for less than half the year

There are other scenarios where metering for payment is a requirement though, and we suggest reviewing Ofgem’s Essential Guide to Metering for a full list.

Metering for performance

Changes to the domestic RHI mean that heat pumps registering for the scheme from 22 May 2018 must meter for performance. If you’re only required to have metering for performance, you will continue to receive payments based on ‘deemed’ heat demand, as determined by your Energy Performance Certificate or heat demand limit.

You will find further guidance by clicking the Ofgem links below :

• Do I need metering for the Domestic Renewable Heat Incentive (RHI)?

• Essential guide to metering