Renewable Heat Incentive (RHI) – subsidy for renewable heating systems

Initiated in 2011 and designed to incentivise the uptake of renewable heating alternatives, the Renewable Heat Incentive – the RHI – provides financial payments to homes and businesses swapping to renewable heating.

What does the Renewable Heat Incentive mean to you?

The Renewable Heat Incentive is available on both domestic and commercial renewable heating applications. The UK government introduced the RHI scheme as part of the wider goal to reduce overall carbon emissions.

In effect, the scheme pays home and business owners for the renewable heat generated by their renewable heating system. In return, carbon emissions are reduced as properties replace harmful fossil fuel systems – like gas and oil – are replaced with cleaner alternatives.

For customers that opt to go green, Renewable Heat Incentive payments will regularly recover the cost of their installation. Payments run for 7 years.

Customers have until 2022 to submit applications to the RHI. Customers have 12 months from commissioning to register their system.

How much could you earn through the RHI?

How much a specific home or business could earn through the Renewable Heat Incentive varies. Payments are deemed against an EPC. Payments can be subject to heat demand capping.

Firstly, different renewable heating systems have different tariff rates – see the latest tariff rates in the tables below. Secondly, the size and fabric of the heated property influence payments. Finally, the efficiency of the system installed alters payments – an air source system with a SPF of 3 will earn less than a system with a SPF of 4.

Air source heat pump installations earn between £8,000 and £10,5000 in RHI payments

Ground source heat pump installations earn between £22,000 and £30,000 in RHI payments.

Solar thermal installations earn between £1,400 and £2,800 in RHI payments.

RHI Tariff Rates – 01/04/2020 – 30/06/2020

Current Domestic RHI Tariff Rates

Renewable TechnologyRHI Tariff RateRHI Tariff Length
Air Source Heat Pumps10.85p7 years
Ground Source Heat Pumps21.16p7 Years
Solar Thermal21.36p7 Years

Current Non-Domestic RHI Tariff Rates

Renewable Heating TechnologyRHI Tariff RateRHI Tariff Length
Air Source Heat Pumps2.79p20 years
Ground Source Heat pumps9.68p20 years
Solar Thermal11.12p20 years

Applying for RHI payments

An RHI application can be made only once the renewable heating system has been installed and commissioned.

To make an application, the following criteria must be met:

– An MCS-approved system installed by an MCS-approved installer and the relevant MCS commissioning certificate

– An Energy Performance Certificate (EPC) dated in the last 24 months with no loft insulation or cavity wall recommendations

– Relevant electricity and/or heat metering in place on the system

Find further information on the RHI scheme on OFGEM’s website here or contact GreenGenUK with any questions.