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Domestic Renewable Heat Incentive Scheme

Officially launched in April 2014, the Domestic Renewable Heat Incentive Scheme (Domestic RHI), is a financial incentive from the government to encourage people to switch to renewable heating systems. If you are accepted for the Domestic RHI scheme, you will receive quarterly payments for seven years according to the amount of renewable heat that your heating system is deemed to produce.

The Domestic RHI is, in general, for heating systems in single homes. You need to have a domestic Energy Performance Certificate (EPC) for your home in order to apply to the scheme and you need to meet minimum insulation requirements. The Domestic RHI is available for all households but those currently using oil-fired or electrical heating are likely to benefit most from the reduction in fuel costs by switching to renewable energy. Read our case study on switching from oil-fired to biomass heating.

There are specific technical requirements that heating systems must meet in order to be eligible for the Domestic RHI scheme, but the types of heating system included are:

•    Biomass only boilers

•    Biomass pellet stoves with integrated boilers

•    Air source heat pumps

•    Ground source heat pumps

•    Solar thermal panels (flat plate or evacuated tube only, and only providing hot water, excluding heating swimming pools)

Your heating system also needs to be certified as MCS-approved (Microgeneration Certification Scheme) and installed by an MCS-accredited installer, such as Plumb-Line.

The application process

1.We carry out a Green Deal Assessment on your property and produce a Green Deal Advice Report.

2.If the Green Deal Advice Report recommends that you have loft or cavity wall insulation installed, then this must be completed first, which we can help you with.

3.You will need an up to date Energy Performance Certificate (EPC) to verify that sufficient insulation is in place.

4.We install your renewable heating system and provide you with an MCS Certificate number.

5.You can then apply online for the Domestic RHI

Eligibility criteria

These are the general eligibility criteria, in some cases other conditions apply.

1.You must be the owner of an eligible heating system

2.You must own or occupy the property in which the renewable heating system has been installed

3.Your renewable heating system must be certified under the MCS scheme

4.If your renewable heating system was installed before 9 April 2014 there are some time restrictions in place – contact us for details

Payments

In most cases, payments are based on the deemed annual heat output of your heating system. You will be paid per kilowatt hour of renewable heat and the tariff will depend on the type of technology. The original tariff rates published on Ofgem’s website on 10 April 2014 were:

Biomass boilers and biomass stoves: 12.2p per kilowatt hour

Air source heat pumps:                       7.3p

Ground source heat pumps:                18.8p

Solar thermal:                                    19.2p

The current tariff rates are available from The Energy Savings Trust
         
Payments are made directly into your bank account on a quarterly basis. 

Funding from the RHI scheme is available on a first-come, first-served basis. The tariff is reviewed every quarter and may be reduced to new applicants if take-up for the scheme is larger than anticipated. If you’re thinking about switching to renewable energy, do it NOW, so you can gain most from the Domestic RHI Scheme. Contact us for more information or to arrange a Green Deal Assessment.