Renewable Heat Incentive

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Domestic Renewable Heat Incentive Scheme (RHI). Launched — April 2014.

On 9 April 2014, the Government announced the details of its incentive scheme for renewable energy, The Domestic Renewable Heat Incentive, or RHI. In the 2015 Autumn Statement it was confirmed that the government will continue to fund the renewable heat incentive RHI which provides funding for new heating systems using technologies like biomass boilers, heat pumps, solar thermal through to 2021.

ADAPT's Energy Group feel that this is a major step forward in making renewable sources of heating affordable, particularly in areas away from the gas network, like Audlem and District.

The Renewable Heat Incentives (RHI)

The Government have two schemes in operation designed to encourage people and businesses to switch to renewable heating systems. It is a financial incentive to offset the initial capital investment.
The eligible heating system types are:

  • biomass only boilers (click here for more details)
  • biomass pellet stoves with integrated boilers (click here for more details)
  • air or water source heat pumps
  • ground or water source heat pumps (click here for more details)
  • solar thermal panels (flat plate or evacuated tube only.)
    Your renewable heating system must be certified under Microgeneration Certification Scheme (MCS).

    The Domestic RHI

    Available to all households apart from new builds (self builders can apply).
    You will need an Energy Performance Certificate (EPC) to determine the energy use of your home — most households will be paid on this "deemed" heat load. Payments are made quarterly, for a period of 7 years. For most people the minimum requirement for insulation is double glazing and loft insulation.
    Details of the launch announcement, including the tariffs set are available via the link below:

    https://www.gov.uk/government/news/new-scheme-offers-cash-incentive-to-households-using-renewable-heating-systems-in-their-homes
    Guidance on the scheme and how to apply for it are available from Ofgem, via the link below:
    https://www.ofgem.gov.uk/environmental-programmes/domestic-renewable-heat-incentive

    The Non-Domestic RHI

    This is for heating systems that serve a business or multiple houses. Some examples:

  • An office building or other place of work
  • A farmhouse and associated dairy or holiday let
  • Two houses served by one heating system
    The non-domestic RHI is paid based on how much heat you use — for this reason meters are required as part of the installation. It (usually) requires MCS certification. Payments are made quarterly based on meter readings.

    Other technologies can qualify for the non-domestic RHI.
    For more detail see here: https://www.ofgem.gov.uk/environmental-programmes/non-domestic-renewable-heat-incentive-rhi/eligibility-non-domestic-rhi

    To benefit from the RHI, you must first:

    • Get an updated energy performance certificate (EPC) to verify you've installed the loft or cavity wall insulation.
    • The system must be registered under the MCS.
    • You must be the owner of an eligible heating system.
    • You must own or occupy the property the renewable heating system is in.
    • All parts of your heating system must have a commissioning date on or after 15th July 2009.
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