The Renewable Heat Incentive (RHI)
What is the Renewable Heat Incentive?
The Renewable Heat Incentive (RHI) is a UK government financial incentive aimed at reducing carbon emissions by promoting the use of renewable heating technologies that use naturally replenished energy.
Households or businesses (both on and off the gas grid) who install a renewable heating technology such as a biomass boiler or solar thermal panels are eligible to receive quarterly payments for the clean, carbon-neutral renewable heat their system produces. Domestic systems will receive payments for 7 years. Non-domestic systems will receive payments for 20 years. Visit the ofgem website for the lastest information, or ask your Varmebaronen installer.
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. Ofgem administer both domestic and non-domestic RHI tariffs.
The Domestic RHI
To qualify for the domestic RHI, the renewable heating system must heat only a single property which is capable of getting a domestic Energy Performance Certificate (EPC). An EPC is the proof required that your property is assessed as a domestic ‘dwelling’. Without one, you won’t be able to apply and can’t join the scheme.
An EPC gives information about a property’s energy use, plus recommendations on how to reduce energy and save money, and is required every time you buy, sell or rent a property. Applicants to the domestic RHI will need to meet minimum insulation requirements (loft and cavity wall insulation) and provide a valid Energy Performance Certificate (EPC) that is no more than 24 months old.
Domestic RHI tariff rates
|Applications submitted||Biomass boilers and stoves||Air source heat pumps||Ground source heat pumps||Solar thermal|
|1st Jan – 31st March 2016||5.14p||7.42p||19.10p||19.51p|
|1st April – 30th June 2016||5.20p||7.51p||19.33p||19.74p|
The Non-Domestic RHI
The non-domestic Renewable Heat Incentive (RHI) helps businesses, public sector (schools, hospitals etc) and non-profit organisations meet the cost of installing renewable heat technologies. This includes district heating schemes where one heating system serves multiple homes or properties. The non-domestic Renewable Heat Incentive is payable for 20 years.
Non-domestic RHI tariff rates
|Applications submitted||Solid biomass (up to 200 kW)||Solid biomass (up to 200 – 1000 kW)||Solid biomass (over 1000 kW)||Solar thermal (up to 200 kW)|
|1st Jan 2016||3.76p||5.18p||19.10p||19.51p|
|1st April 2016||3.62p||5.24p||19.33p||19.74p|