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The Domestic RHI

What is it?

The Domestic RHI (Renewable Heat Incentive) is a Government financial incentive to encourage a switch to renewable heating systems.

If you join and comply with the scheme rules, you’ll receive quarterly payments for seven years.

It’s a way to help the UK reduce its carbon emissions and meet the EU renewable energy targets.

Who is it for?

The scheme is available for households both off and on the gas grid, however those without mains gas have the most potential to save on fuel bills and decrease carbon emissions.

Only installations carried out by an MCS accredited installer, such as GrEnergy, that have issued an MCS certificate, qualify.

Which heating systems does this apply to?

  • Biomass boilers and pellet stoves
  • Air Source Heat Pumps
  • Ground Source Heat Pumps
  • Solar Thermal panels (flat plate and evacuated tube)

What is the eligibility criteria?

Primarily you must have a GDA (Green Deal Assessment) carried out on your home. This includes an EPC (Energy performance certificate).

For a more indepth summary of requirements for individual systems, more information can be found here on the ofgem website.

But I already installed my system...

If you installed your system after 15th July 2009 you may be counted as a legacy applicannt. Importantly, this means you can still apply and recieve the Domestic RHI!

Legacy applications are of two types:

  • People that received the Renewable Heat Premium Payment (RHPP), a one-off grant that helped cover some of the upfront cost of installing a renewable heating system.
  • People that financed the cost of their renewable heating system entirely by other means.

If you received RHPP, it affects the dates you can apply; and to avoid a double subsidy, Ofgem deduct the amount you received in RHPP evenly from your Domestic RHI payments over the lifetime of the seven year payment of the scheme.

When can I apply?

All legacy applicants must apply to the Domestic RHI scheme within the first 12 months of its' opening. Because of the large volume of RHPP recipients, Ofgem have staggered when you can apply to ensure you get the best level of service. It works like this:

  • If you did not receive RHPP, you can apply now.
  • If you received, but did not use the RHPP vouchers, you can apply now.
  • If you applied for RHPP before 20 May 2013, you can apply three months after the scheme opened (from 9 July 2014).
  • If you applied for RHPP on or after 20 May 2013, you can apply six months after the scheme opened (from 9 October 2014). For any of the above cases you have until 8 April 2015 to apply.
  • If, during the first year of the scheme, the Government is forced to reduce tariffs for the Domestic RHI due to high uptake, you will not be affected and will continue to receive the original rate.

Technology

ASHP GSHP Biomass Solar thermal

Tariff rate (p/kWh)

7.42 19.1 7.14 19.51

Official Case Study of RHI

DECC Official Domestic RHI Payment Calculator