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The Renewable Heat Incentive (RHI) for domestic properties

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

The domestic Renewable Heat Incentive is aimed specifically at householders. There is also a commercial Renewable Heat Incentive scheme already running for commercial properties.

The UK Government expects the Renewable Heat Incentive to make a significant contribution towards their 2020 ambition of having 12 per cent of heating coming from renewable sources.

The scheme will pay you for each kWh of heat generated by eligible technologies such as ground source heat pumps, air source heat pumps, biomass and solar thermal systems. The scheme started in the spring of 2014 and payments will be made for seven years from when your application is approved.

Ofgem have published some renewable heat incentive factsheets on their website.

Properties that have an existing eligible installation commissioned on or after 15 July 2009 will also be eligible for the RHI. Further information on how to apply should be made available by the Government in the autumn of 2013. "Legacy" applications will be processed once the scheme actually starts in the spring 2014 on a rolling basis depending on when the system was installed.

If you would like to register your interest in the Renewable Heat Incentive, you can fill out the form at the bottom of the page and we will email you more information as soon as it is available.

The tariff levels have been set at 7.42p/kWh for air source heat pumps; 8.93p/kWh for biomass boilers; 19.51p/kWh for ground source heat pumps and at least 19.51 p/kWh for solar thermal.

This news means the payback period for eligible technologies will fall dramatically.

Technology

RHI rate pence/kWh

Ground/Water Source Heat Pump

19.1

Air Source Heat Pump

7.42

Biomass Boiler

8.93

Solar Thermal

19.51

I already have a renewable heating system. How do I apply?

Applications will need to be supported by the following documentation where applicable:

A Green Deal assessment (if a retrofit)

An Energy Performance Certificate

Application forms

MCS commissioning certificate

isoenergy can help by completing these assessments for you, making the whole process simpler. We will be able to offer you instructions on how to apply nearer the time when the detail is confirmed. To add yourself to the list of interested parties, please fill out the format the bottom of this page to register your interest in the Renewable Heat Incentive

I am thinking of installing renewable heating technology at my property, how does the RHI affect me?

The domestic RHI will mean the payback period for eligible technologies will fall dramatically. Here is an example of how it affects a typical ground source heat pump installation in a 500 m2 house.

A typical RHI payment calculation

Heat pump size

40kW

Eligible heat generated

115000 kWh

Assumed Seasonal Performance Factor

3.4

Tariff (GSHP)

£0.191

Potential annual RHI

£15,504

Potential annual fuel saving (against oil)

£4,500

Value over 7 year scheme lifetime

£140,000

 

You can use the Renewable Heat Incentive calculator on the right of this page to get an estimated value of the scheme based on your current oil consumption.

If you have received a previous project proposal from isoenergy, please get in touch and we will update the payback calculations to illustrate how much you should be entitled to from the RHI and how this would reduce your payback period. Please This email address is being protected from spambots. You need JavaScript enabled to view it. or give us a call to discuss your project on 01293 821345.

If you have not previously received a project proposal from isoenergy and would like to discuss how the domestic RHI can make the installation of renewable heating technology more cost effective, This email address is being protected from spambots. You need JavaScript enabled to view it. or call us on 01293 821345.

 

 

Register your interest

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