The RHI is a government scheme that rewards you for the heat produced by the renewable energy sources you own
Renewable Heat Incentive
The Renewable Heat Incentive scheme pays a given amount for each unit of renewable heat generated for the grant contract period. The scheme is designed to encourage the use of the most efficient forms of renewable heating technologies and reflects the differing installation costs. There are two grant streams; domestic and non-domestic.
The domestic scheme applies to single houses and pays for 7 years up to the annual heat demand cap. Air source heat pumps are capped at 20,000 kWh of heating and hot water and ground source at 30,000 kWh per year. These equate to maximum payments of around £11,000 for air source and £34,000 for ground source over the 7 year grant contract period. To get an idea of what sort of returns you might get through the RHI scheme take a look at the governments official domestic RHI Calculator.
The non-domestic scheme is intended for projects where two or more houses share a ground heat collector or the property being heated is used for commercial purposes. This is a 20 year grant scheme and further information can be found on the Ofgem website
Technology Tariff (p/kWh) Duration
Ground source heat pump 20.89 7 years
Air source heat pump 10.71 7 years
Tariff uplift : The tariffs for air and ground source heat pumps and biomass will be increased to the above rates from the 1st April 2018.
To qualify for RHI payments both the equipment and installer must be MCS accredited. Existing homes will need an EPC and newly built homes a SAP Energy Performance Certificate in order to show that the property meets the minimum level of insulation required.
The Non-Domestic RHI Tariff is a little more complicated so the best source of reference is the ofgem website. Non-Domestic RHI payments will last for the expected lifetime of the system (20 years).
Which scheme would I qualify for?
It is assessed on a case by case basis, but some examples are:
Properties with a home office within a house that has, or can get a domestic EPC, should be eligible for the Domestic RHI.
Properties with annexes attached to the house are normally covered by one domestic EPC and should be eligible for the Domestic RHI.
Properties with a main house and a self-contained outbuilding (with its own bathroom and kitchen), both heated by a renewable heating system, would normally have an EPC for each. They would not be eligible for the Domestic RHI.
Properties with a main house and other outbuildings all heated by a renewable heating system may not be eligible for the Domestic RHI.
If you’d like to discuss RHI in more detail please Contact Us.