Domestic Renewable Heat Incentive

So exactly what is the Domestic Renewable Heat Incentive:

The Government wants us to switch to renewable sources of energy in order to reduce greenhouse gas emissions and meet targets for reducing the effects of climate change. The Domestic Renewable Heat Incentive (RHI) was introduced in April 2014 to encourage all of us to consider using renewable fuels to heat our hot water and homes.

The Domestic RHI is available to households both on and off the gas grid and there are four types of heating system that are eligible –

  • Biomass only boilers and Biomass Pellet Stoves
  • Air Source Heat Pumps
  • Ground Source Heat Pumps
  • Flat Plate and Evacuated Tube Solar Thermal Panels

Application is made via the Ofgem website and Adam Gas provide all the help and support at no cost, to complete the application form. Firstly you will need to complete a few steps, and again Adam Gas will assist.

A Green Deal Assessment of your home will need to be carried out by an authorised Green Deal Assessor who will visit your property, tell you what improvements you can make and estimate how much you could save on your energy bills. You will need their report number to complete the application. The Green Deal Report should include an Energy Performance Certificate or EPC – if it doesn’t you will need to arrange to get one of these too, just as you would if you were selling your house. Finally you will need a Microgeneration Certification Scheme or MCS certificate number for both the heating appliance you wish to use and your installer.

If you are successful in your application you will receive quarterly payments over seven years as long as you adhere to the scheme rules during this time.

The payments are aimed at bridging the gap between the costs of installing and operating a renewable system over a fossil fuel system. The payments are calculated on the amount of energy required over a 20 year period but paid over a 7 year period – so the scheme is very attractive.

Payments are made at a set rate per kilowatt hour of renewable heat generated. The tariff rates are going to be reviewed quarterly but once you join the scheme you will remain on the same tariff rate for the seven year payment lifetime.

Most people will be paid based on their property’s estimated annual heat use.  For biomass boiler systems for example, this is calculated from the Energy Performance Certificate or EPC.

For an approximate indication of the potential RHI payment you could receive, you can use the online DECC Domestic RHI calculator.