The Renewable Heat Incentive (RHI) is a government-led initiative that encourages home owners and businesses to use renewable energy instead of fossil fuels to heat space and water.
44% of the energy used in the UK is for space and water heating. The aim is to have 12% of this demand satisfied by renewable energy by 2020.
To reach this target the RHI has been rolled out for both Domestic and Non-Domestic installations. The Treasury have committed to the budget for the RHI on any new installations (and some existing) until 2015/16 with an intention to carry through the scheme for new applications until 2021.
The Domestic RHI is a 7 year tariff that expects to pay back the cost of your boiler and pay towards some of the cost of fuel in those 7 years.
How to qualify for the RHI
First, you must have a Green Deal Assesssment and Energy Performance Certificate. This will give an EPC rating from which Ofgem work out how much you would receive in funding.
To receive the Domestic RHI you must have wall and cavity insulation (there are some exceptions to this). If your Green Deal Assessment recommends you install insulation it must be done with a follow up EPC as proof.
You will also need your MCS certificate. Your installation must be done by a registered MCS member. As MCS members we give you a certificate once we’ve completed your system.
Domestic RHI payments from 1st October to 31 December 2016
|Renewable technology||Payments per kWh generated|
|Solar thermal panels||19.74p|
|Biomass pellet stoves with integrated boilers||4.68p|
Each quarter year DECC give details of any changes to the payments for the next quarter.
RHI payments for Small Commercial Biomass from 1st October 2016
|More than 200kWth, less than 1MWth||Tariff p/kWth|
Tier 1 is the payment made on 1,314 peak hours per year. Tier 2 payment kick in after the 1,314 hours.
Biomass fuel must be sourced from registered suppliers (unless you are a self-supplier). Find out more about the requirements and how to find a registered supplier on our sustainable fuel for biomass page.
For a quote that includes expected return from the RHI on your property: