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The Renewable Heat Incentive (RHI) for domestic properties

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 non-domestic Renewable Heat Incentive scheme running for commercial properties, district heating schemes.

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 renewable 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.

A cap on the amount of energy eligable for heat pumps was introduced in the Spring of 2017. The cap for ground source is 30,000kWh/pa and for air source it is 20,000kWh/pa.

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

Current Domestic Renewable Heat Incentive tariffs as of 1st April to 30th June 2017

Technology

RHI rate pence/kWh

Ground/Water Source Heat Pump

19.55

Air Source Heat Pump

10.02

Biomass Boiler

6.44

Solar Thermal

19.74

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

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

A minimum level of insulation in the loft and wall cavities if possible.

An Energy Performance Certificate

MCS commissioning certificate for your renewable energy system

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)

£0.1955

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.

 

 

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