Renewable Heat Incentive

Renewable Heat Incentive (RHI)

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 UK Government expects the RHI to make a significant contribution towards their 2020 ambition of having 12 per cent of heating coming from renewable sources. The Renewable Heat Incentive is the first of its kind in the world.

Domestic RHI scheme

The details of the domestic Renewable Heat Incentive (RHI) were announced by the UK Government on 12 July 2013. The Government has released a document setting out the final policy for the domestic RHI, subject to state aid and parliamentary approval.

moneyThe 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 met 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.  This is to help manage the potentially large volume of applications submitted when the scheme opens and to avoid a backlog. 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 vary depending on the technology installed:

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