The Domestic RHI scheme has been extended for a further 12 months. It will run until 31 March 2022.
What is the Domestic Renewable Heat Incentive?
The Domestic Renewable Heat Incentive is a Government financial support scheme for renewable heating systems, such heat pumps. The scheme was launched in April 2014 and is administered by Ofgem, who are the office of Gas and Electricity Markets.
The Domestic RHI has been created 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.
As owners of renewable heating, you will be paid quarterly over a 7-year period for the amount of clean, green renewable heat it’s estimated you system would produce. Eligible renewable heat includes the energy required for heating the home and providing domestic hot water.
New-Build Gas Ban
All New-build homes are going to be banned from using gas heating after 2025, therefore now has never been the best time to invest in your dream home with renewable heat alternatives.
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 boilers and solar thermal systems. These tariffs represent the amount of money you would receive for each unit of renewable heat that is generated by the system to heat your home.
Table Showing RHI Tariff Q1 2021/2022
|Technology||Current RHI Tariff’s (per/kWh)|
|Air Source Heat Pump||10.92p|
|Ground Source Heat Pump||21.29p|
The table above is from information published from Ofgem. You can see the tariffs on their Domestic RHI tariffs and payments page.
These tariffs are set by the UK Government at a level designed to compensate for the difference between costs of installing and operating renewable heating systems and fossil fuel systems, including non-financial costs such as disruption, based on 20 years of heat produced. Fossil fuel costs used are those for off-gas households.
How Do I Apply For RHI?
Hero Renewables can help you understand the Renewable Heat Incentive requirements and guide you through the process of applying for payments so that you can receive payment for 7 years for generating renewable heat.
Alternatively, you can apply for the domestic RHI via Ofgem’s website. Providing you have all the relevant information to hand and your application does not require a manual review you should receive an immediate decision.