Renewable Heat Incentive Scheme Explained (UK)

Renewable Heat Incentive Update

The domestic Renewable Heat Incentive (domestic RHI) scheme closed to new applications at midnight on 31 March 2022.

For more information please visit the Energy Saving Trust website(link opens in a new window).

What is the Renewable Heat Incentive scheme?

The scheme was launched as part of the government’s initiative to have 12% of UK homes heated by renewable sources by 2020. All homes in England, Scotland and Wales are eligible for the scheme which is backed by the Government’s Department for Energy and administered by Ofgem E-Serve.

What renewable technologies can you claim RHI for?

The scheme is open to any home with the following renewable energy systems installed:

• Solar thermal panels (flat panel and evacuated tube)
• Biomass boilers (must use solid biomass and be used for space or water heating)
• Biomass cooker stoves with integrated boilers
• Air source heat pumps (air-to-water, air-to-air not allowed)
• Ground source heat pumps
• Water source heat pumps
• Some cooker stoves with high-temperature heat pumps

Who is eligible for the scheme?

The scheme is open to all homes in the UK both on and off-grid who have installed a qualifying renewable energy heating system. The heating system can make use of any MCS certified renewable energy technologies (listed above) including solar thermal, biomass, air source heat pump and ground source heat pump.

To qualify for the scheme, the system must be MCS certified and have been installed by an MCS certified installer. You will also need to submit an Energy Performance Certificate (EPC) with your application. To be accepted, your EPC must have been issued within the last 24 months and reflect any changes you have made to your property, including recent building work and the installation of the renewable heating system.

You must also apply for the scheme within 12 months of your system being commissioned. The date of commissioning occurs once your installer has signed off your system. This date is shown on your MCS certificate which was issued by your installer at the time of installation.

Qualifying homeowners also need to have made some financial contribution to the cost of purchasing and installing the system. Any homeowner who received a grant to pay for the system ‘entirely’ is not eligible for the scheme. Any system which was paid for entirely by a third-party, including family members, is also not eligible for the scheme.

If you received a grant to pay for part of the installation (such as the Renewable Heat Premium Payment), you are eligible for the scheme but the amount you receive may be adjusted accordingly when calculating payments.

Most homes will be paid an amount based on their estimated heat demand which is recorded on their EPC. However, some homes may also need to have some form of metering installed to qualify. There are two types of metering system available, meter for payment and meter for performance. The type of meter you need will depend on the renewable technology installed.

Metering for payment

Any home with a back-up heating system installed which uses fossil fuels will need to install a meter for payment.

Any hybrid system which uses a combination of fossil fuels and renewable energy will also require a meter for payment.

Any home which is occupied for part of the year will need to have a meter installed to qualify for the scheme.

If you have a biomass system installed which is not designed to heat your entire home you will also need to have a meter for payment installed.

Metering for performance

Any home which has an air source heat pump or ground source heat pump installed will need be metered for performance.

If you have a combination of technologies installed you may need to install metering for payment and performance.

All meters must be installed by an MCS certified solar installer and the installer must also be certified to work on the type of renewable technology used in your home. This applies to both new systems and the retrofitting of meters to legacy systems.

How much could you earn?

Once you have been accepted into the scheme you will receive quarterly payments over seven years. The amount you receive will depend on the heat demand of your property (recorded on your EPC), the age of the property, the type of insulation installed and the renewable technology used. RHI payments are calculated by multiplying the average heat demand by the relative RHI rate for your type of renewable technology.

The domestic rates for RHI are set by the government and linked to the Consumer Price Index. The current rates as of November 2019 are:

Renewable	Rate
Renewable: Solar Thermal Panels	Rate: 21.09/kWh
Renewable: Air Source Heat Pumps (air to water)	Rate: 10.71/kWh
Renewable: Ground Source Heat Pumps	Rate: 20.89/kWh
Renewable: Biomass Boilers and Biomass (cooker) Stoves	Rate: 6.88/kWh

The government has created a handy RHI payment calculator to show you how much money you could earn from the scheme.

How to apply for RHI

To apply for the scheme you must first make sure your home is eligible and your system is MCS certified. Once you are ready to proceed, complete the application form on the Ofgem website.

Alternatively, call Ofgem on 0300 003 0744 to complete the application with an adviser. The application process is FREE and if accepted you will receive a substantial contribution to your annual heating costs.