Domestic Renewable Heat Incentive

The Renewable Heat Incentive (RHI) is a Government scheme set up to encourage the increased uptake of renewable heat among householders, communities and businesses through financial incentives.

The Domestic scheme is open to homeowners and registered social and private landlords. Those with eligible installations will receive quarterly RHI payments over 7 years towards the cost of their renewable heating system.

Although payments are fixed for 7 years, tariffs are still subject to annual adjustments in line with the Retail Price Index (RPI).

How The Scheme Works

The domestic RHI is currently in place for biomass, solar thermal, air-source heat pumps and ground-source heat pumps. It is open to applications from households both off and on the gas grid.

Eligible outputs of a domestic renewable heating system include space and water heating.

In order to be eligible for the scheme, a Green Deal Assessment on the property is required before application. This assessment will be used to calculate RHI payments and also to ensure that basic thermal efficiency measures have been installed within the property. The technology installed must also be MCS certified along with the company that installed the technology.

Biomass and Heat Pumps payments will be calculated using annual heat usage estimations from the property’s Energy Performance Certificate (EPC), included in the mandatory Green Deal Assessment. Solar Thermal payments will be based on hot water usage only using a MCS calculator provided by the installer. The amount paid will be determined by multiplying the eligible metered heat reading by the relevant tariff rate.

Tariff Rates For Domestic RHI

The table below details the domestic RHI tariff based on the different eligible technologies. Tariffs for new applicants can be subject to cuts following the expenditure forecasts published quarterly by DECC.

TechnologyTariff Rate from 1st January 2016
Solar Thermal Hot Water 19.51p/kWh
Air Source Heat Pump 7.42p/kWh
Ground Source/Water Source Heat Pump 19.1p/kWh
Biomass 5.14p/kWh

Estimate the income and savings you could receive from an eligible renewable heating system with DECC’s online Renewable Heat Incentive Calculator

Contact us to discuss different renewable heating technologies and find out which would be most suitable for your property.

Get in touch and one of our advisors will be happy to discuss your needs

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