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The Domestic Renewable Heat Incentive

The scheme was introduced April 2014 and is open to owner-occupiers, self-builders, private landlords and Registered Providers of Social Housing. Payments are made to the owner of a qualifying heating system for seven years.

The scheme aims to promote the installation of renewable energy technologies by making the cost of heating properties “off the gas grid” comparable to those with a mains gas supply. However, the scheme is open to all households whether on or off the gas grid.

Payments are made quarterly and based on a technology specific tariffs and a “deemed” energy requirements for the relevant dwelling as detailed below:

Renewable Technology Domestic RHI Tariff*
Application Period from
01/07/2018
(p/kWh)
Heat Demand Cap

(kWh)

Biomass Boilers & Stoves

6.74

25,000

Air Source Heat Pumps

10.49

20,000

Ground Source Heat Pumps

20.46

30,000

Solar Thermal

20.66

n/a

*Tariffs will be subject to CPI adjustment as of 1 April 2019

 

The Domestic Renewable Heat Incentive

For installations retro-fitted to existing dwellings, an Energy Performance Certificate (EPC), dated not less than two years from the date of application is required. This will specify a “deemed” energy requirement” for heating and the provision of hot water to which the tariff payment is applied. If the EPC specifies the property requires cavity wall or loft insulation, this work must be undertaken prior to the RHI application being accepted.

For new build dwellings, the deemed energy requirement will be specified in the RdSAP calculation performed on project completion.

As from 20th September 2017 a “deemed energy cap” is applied to properties which will vary depending on technology. If the deemed energy requirement is in excess of the cap, tariff payments will be made only up to the cap amount.

Second homes and bivalent installations (ie. where there is a backup fossil fuel boiler) still qualify for the scheme, but a heat meter must be installed, and payments are only made for heat generated by the renewable technology.

In all cases the heating system and the installer must be accredited by the MCS.

All installations must be registered with Ofgem, who administer the scheme. Payments are made for seven years and adjusted annually in line with the Consumer Price Index (RPI). The tariff levels for new entrants are reviewed quarterly and adjusted from time to time based on the number of installations against pre-set targets. Once an owner is claiming the RHI, their tariff is fixed and can only be altered in line with the CPI adjustment.

The above is a summary of the Domestic RHI provisions and requirements. Fervo Renewable Energy would be pleased to advise as to what would be the most appropriate renewable solutions for your home and what return the RHI scheme will provide.

To find out more contact Fervo Renewable Energy for an informal chat or make an enquiry.