Renewable Heat Incentive

The Renewable Heat Incentive (RHI) offers homeowners who use renewable energy technologies or products fixed payments for every kWh of heat generated. Renewable energy technologies that are eligible for RHI include;

  • Biomass boilers

  • Biomass Pellet Stoves

  • Ground source heat pumps

  • Air Source Heat Pumps

  • Solar PV

  • Solar thermal

The government publishes information on how much will be paid per kWh on their website, which is updated regularly.

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Why is the Renewable Heat Incentive (RHI) needed?

The incentive was been introduced by the Government to help raise and keep the level of renewable energy in the UK sustainable. A legally binding target of 15% of total energy from renewables by 2020 has now been put in place.

The aim of RHI is to pay for new installations over a period of 7 years. This gives homeowners a more efficient and reliable system for the future.

How does the Renewable Heat Incentive (RHI) work?

Step One: Home or business owners install their chosen renewable energy technology in their property e.g solar PV or a biomass boiler. Or any combination of these products for best results!

Step Two: Home or business owners measure the amount of heat their renewable energy technology generates.

Step Three: A fixed amount (tariff) is paid to householders based upon the size and type of technology they have installed and its output. This is paid every quarter, for 7 years.

Who is eligible?

Everyone can be eligible for Renewable Heating Incentive, but it is important to get the right fit for you. From households, business owners, schools, hospitals, care homes and even private landlords.

CASE STUDIES

These case studies are examples taken from the governments ofgem website. For more information click here.

Biomass

“We were building our own house (in an area where mains gas was not available) and therefore had a great opportunity to choose the right heating system for us.  We settled on a biomass boiler after looking into air source and ground source heat pumps.

After speaking to The Energy Saving Trust we received a list of MCS accredited installers. We chose a local firm to us and we are very pleased with the boiler and installation process.  Once installed, it was simple to apply for the Renewable Heat Premium Payment (RHPP), which went towards the cost of the boiler.

My installer informed me that we would be entitled to apply for the Domestic RHI and I kept looking on the Energy Saving Trust website for further information.  In July I applied for the Domestic RHI online and found it to be a very easy process. We had to provide some additional information as we had an eligible new-build, but everything was clearly set out and we were able to provide the correct paperwork straight away. We received a decision that we were eligible for the funding within a week.”

Ms Day, Newton Abbot


Ground source heat pump

“The bitterly cold winter of 2010 and the resulting heavy consumption of kerosene (a tank full in a month!) proved to be the tipping point; there had to be a better way of heating our house. Six months of detailed research on the internet brought GSHP to the fore as the best option for our 17th century farm house. A year later the system was in; two boreholes, a combi heat pump and larger radiators. What a transformation! The house was lovely and warm all the time, and better still, the cost of running the system was nearly 60% less than with oil. My installer told me at the time that RHI would happen one day, and sure enough, three years later, an e-mail from Ofgem advised me that domestic RHI was live, and that I should apply. I followed their online advice and got all the necessary documentation in place ready for legacy system D day. The application process itself was really easy and quick. Now I can look forward to an income stream over the next seven years that will go a long way to offset the cost incurred with the original installation. A cracking deal, and it’s cheaper to run too!”

Mr Evans, Llanybydder, Wales


Air source heat pump

“With heating oil prices rising I researched alternative options. As I had already installed solar PV panels, feeding that electricity generation into an air source heat pump appeared to be the best option, especially when I heard about the Domestic RHI. I applied as soon as possible and now the RHI will nearly cover the installation costs.

My system has been running for a couple of years and performs better than expected with virtually no maintenance to worry about. I would recommend the heat pump system to anyone who has a well-insulated house.”

Mr Howells, Cwmbran, Wales


Solar Thermal

"Over a number of years our property in Small Dole suffered with a subsidence problem. Rectification would have been expensive, disruptive and not guaranteed to be successful, so we opted for demolition and a complete rebuild. Installation of solar thermal panels seemed like a very good idea from the start, to both future proof against rising energy prices, and also to help our local planning authority application. The installer who supplied and fitted our solar thermal panels also told us about the Domestic RHI and supplied us with the relevant certificates The application process was fairly straight forward and Ofgem’s applicant support centre was extremely helpful with regard to the information and documentation we needed to supply. The solar thermal system provides us with all the hot water we require during the summer and just needs a bit of help from our gas boiler during the winter months."

Mr Thyer, Brighton