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.

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

How do the Renewable Heat Incentive (RHI) payments work?

After joining the RHI scheme, you receive a quarterly tariff payment for every kilowatt hour (kWh) of renewable heat you produce, for seven years. It's possible for households to install more than one technology and receive payments for each system they use. Energy regulator Ofgem is responsible for dealing with applications and payments. 

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.

Who can apply for RHI?

  • 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 available to new build properties (other than self-build projects).

You must apply within one year of the commissioning date of your system.

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 09:00 to 17:00 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 or a social landlord)
  • 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 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.  

Tariffs

 To view the current RHI tariffs click here

 

  • 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 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 Government or public funds (such as the Renewable Heat Premium Payment), then the amount received will be taken into account when calculating your domestic RHI payments.

 

For more information go to www.energysavingtrust.org.uk

 

Page last updated 14/12/2016

 

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