Domestic RHI

Domestic Renewable Heat Incentive

The details of the domestic Renewable Heat Incentive (RHI) were announced by the UK Government on 12 July 2013. The main details of the scheme which were announced, and which are subject to final clarification and parliamentary approval, are listed below:

The main details of the scheme are listed below:

  • The domestic RHI is a UK Government financial support scheme for renewable heat, targeted at, but not limited to, off gas grid households.
  • the domestic RHI scheme covers England, Wales and Scotland only
  • DECC intend that the scheme will open to applications in Spring 2014 and will be administered by Ofgem
  • Ofgem guidance will be available before the launch of the scheme on how to apply and the information that will need to be provided
  • the scheme will cover single domestic dwellings and will be open to owner-occupiers, private landlords, Registered Providers of Social Housing, third party owners of heating systems and self-builders. It will not be open to new build properties other than self-build
  • it will be open to anyone in these groups who installed an eligible technology since 15th July 2009, provided they meet the scheme criteria
  • for those who have installed a renewable heating system before the launch of the scheme in Spring 2014 and since 15 July 2009 (legacy applications), the date they can submit their application may not be from when the scheme first opens and will be phased over time. Further details on the phasing will be provided by Ofgem prior to launch
  • the financial support will be paid at a set rate per unit of renewable heat produced (kilowatt hour or kWh), for seven years, to the owner of the heating system
  • the scheme will support air source heat pumps (ASHP), biomass systems, ground source heat pumps (GSHP) and solar thermal technologies. The support rates will vary depending on the technology installed
  • for biomass the renewable heat generated will be based on an estimated figure of heat demand from an Energy Performance Certificate (EPC)
  • for heat pumps the renewable heat generated will be based on an estimate of the heat demand from an EPC combined with an estimate of the heat pump’s efficiency
  • for solar thermal systems the renewable heat generated will be based on the estimate of system performance completed as part of an Microgeneration Certification Scheme (MCS) installation
  • to help improve performance of renewable heating systems, there will be an extra incentive for applicants who install metering and monitoring service packages, of £230 per year for heat pumps and £200 per year for biomass boilers
  • to be eligible the system must be certified under the Microgeneration Certification Scheme (MCS) scheme and meet relevant standards for each technology
  • all applicants are required to complete a Green Deal Assessment (GDA) before applying and to ensure they meet minimum energy efficiency requirements of loft and cavity insulation where required by the GDA
  • any public grants previously received, including RHPP, will be deducted to avoid a double subsidy
  • tariffs will change annually in line with the Retail Price Index (RPI)
  • DECC intend to introduce a system of degression to control the costs of the scheme. This is where tariffs are reduced over time for new applications to the scheme. Those who have already secured their tariff will not have their tariff reduced due to cost control. DECC will announce further details on the cost control policy in Autumn 2013.

Please note that this is not an exhaustive list of all the criteria of the scheme and the details of the scheme are subject to further clarification and parliamentary approval therefore please keep this in mind when making a decision about installing a renewables systemYou can find further details about the scheme and link to all the related policy documents on the UK Government website.

Visit the Energy Saving Trust website for more information: www.energysavingtrust.org.uk