The Renewable Heat Incentive (RHI)

What is the Renewable Heat Incentive?

Domestic-RHI-boilers-MCS-accreditedThe 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