What is the Domestic Renewable Heat Incentive?
The Domestic Renewable Heat Incentive is a Government financial support scheme for renewable heating systems, such ground source heat pumps and air source heat pumps.
The scheme was launched in April 2014 and is administered by Ofgem, who are the office of Gas and Electricity Markets, which are a non-ministerial government department and an independent National Regulatory Authority, recognised by EU Directives.
The purpose of the Domestic RHI is to support and reward those households who move away from traditional fossil fuels for heating their homes, which helps towards the Government’s renewable energy and carbon reduction targets.
Greenhouse gas emissions in the UK will be cut to almost zero by 2050, under the terms of a new government plan to tackle climate change set out last year.
With New-build homes being banned from using gas heating after 2025, now has never been the best time to invest in your dream home with renewable heat alternatives.
As owners of renewable heating will be paid quarterly over a 7-year period for the amount of clean, green renewable heat it’s estimated their system produce. Eligible renewable heat includes the energy required for heating the home and providing domestic hot water.
How Does the Payment Work Out?
The Domestic RHI is a tariff-based system. The table below shows the current Domestic RHI tariffs for heat pumps, biomass boiler and solar thermal. These tariffs represent the amount you receive for each unit of renewable heat generated by your heat pump to heat your home.
Table Showing RHI Tariff 2020/2021
|Technology||Current RHI Tariff’s (per/kWh)|
|Air Source Heat Pump||10.85p|
|Ground Source Heat Pump||21.16p|