What is the Renewable Heat Incentive (RHI)?
The Renewable Heat Incentive is a UK government financial subsidy for the installation of renewable energy systems. The scheme was first launched in November 2011 and initially offered two plans; Domestic and Non Domestic. The Non-Domestic scheme which was aimed at businesses and commercial projects came to an end in March 2021 whilst the Domestic scheme which caters to homeowners, is still available until the 31st March 2022.
RHI offers homeowners quarterly payments every year for seven years after a renewable system is installed in the property.
Which Technologies Qualify for RHI?
Air source heat pumps
Ground source heat pumps
Biomass boilers
Biomass pellet stoves
Solar thermal
How Much Can I Earn From RHI?
The amount you earn is based on how much renewable energy your system produces, so the bigger your system the more you will earn. This is to offset the initial cost of installation as larger systems have a higher cost.
Each technology which is applicable for RHI payments has a tariff which can change in line with inflation. The up to date tariff is available from OFGEM who are the regulatory body for the scheme. The tariff differs across each technology based on how efficient it is e.g. Ground source heat pumps are more efficient than air source heat pumps and so the tariff is different to reflect this.
Example Earnings
Below we've provided estimate for a property that has a hot water and heating demand of 30,000 kWh/yr and a SCOP rating of 3.
Air Source
Air source heat pumps have a tariff of 10.92p, the total payment after 7 years would be approx £15,288
Ground Source
Ground source heat pumps have a tariff of 21.29p, the total payment after 7 years would be £29,806
Use the links below to check the current tariff on the Ofgem website and the official UK government RHI calculator where you can check to see how much you could earn for your property.
How to Apply for RHI
01. Get a Copy of Your EPC Certificate
if you live in England or Wales you can enter your postcode on the government website to get a copy of your certificate. If the certificate states you need loft or cavity wall insulation you will need to install this to qualify for RHI.
02. Find an MCS Approved Installer
Once your installation is complete they will need to provide you with an MCS certificate (within 10 days of the commissioning date, a MCS compliance certficate, an itemised invoice showing parts and labour and a completed copy of Installer Metering Questions. You should also ask your installer about system maintenance and keeping the system in good working order is a condition of receiving your RHI payments.
03. Apply on the Ofgem Website
Once your heat pump has been installed and you have your documentation, visit the Ofgem website and submit your application via the online form. You'll receive an immediate decision on your application.
04. Receive your first payment
You'll receive your first payment 3 months after your submitted application was approved.
