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Domestic RHI Payments set for Increase in April 2016

Ofgem has announced that Domestic RHI payments are to be increased on installations registered on or after April 1, 2016.

The Renewable Heat Incentive (RHI) government-backed scheme was initiated to encourage the uptake of domestic and commercial renewable heating solutions by paying customers for the renewable heat their system generates. Customers are paid at a set rate for each kilowatt of renewable heat generated by their system and these payments are aimed to bridge the financial gap between traditional heating solutions and their renewable alternatives.

As per Ofgem regulations, these payments are subject to a quarterly review that analyses uptake and its impact on overall budget allocation and total spend. Ordinarily, these quarterly reviews result in digression, but tariff rates for April 2016 are set for a slight increase – meaning more money in the customer’s pockets. This comes as a welcome boost to both potential renewable investors and installers still reeling from recent cuts to the Feed-in Tariff.

Renewable Heat Incentives tariff rates from April 1, 2016

Date of Application/ Technology Biomass Boilers Air Source Heat Pumps Ground Source Heat Pumps Solar Thermal
01/01/2016 – 31/03/2016 5.14p 7.42p 19.10p 19.51p
01/04/2106 – 30-06/16 5.20p 7.51p 19.33p 19.74p

What will these changes to Domestic RHI payments mean to the customer?

Although the changes only reflect a small percentage increase, when calculated over the seven year period of the RHI scheme payments they could mean in an extra £100 to the customer, a welcome bonus. More importantly, these changes reflect stability within the RHI scheme that should build customer trust. Recent digressions and cuts to the solar Feed-in Tariff and previous reduction in the RHI scheme have reflected in customer uptake of renewable solutions, with installation rates dropping in the various technologies. However, these RHI payment increases represent a commitment from Ofgem towards rewarding customers making the switch to a renewable heating technology.

What systems are eligible for Domestic RHI payments?

Air source heat pumps, ground source heat pumps, biomass boilers and solar thermal systems are all eligible for RHI pays, providing they are installed to meet a number of set criteria. Click the links in the text above for further information about the individual systems and how they benefit the customer.

For more information on the Domestic RHI scheme, visit Ofgem’s Domestic RHI web page.

How can GreenGenUK help?

GreenGenUK is fully MCS accredited in all the above technologies and, as such, all the renewable heating solutions we install are readily installed to meet the RHI scheme criteria. With vast experience installing a variety of renewable heating alternatives, GreenGen is able to offer impartial advice and guidance as to which systems will be best suited and most financially beneficial on a customer-by-customer basis.

To speak to one of our renewable energy experts to see how a renewable alternative will benefit you, your family and your home for years to come. We are happy to help with any and all questions and queries.

Complete the enquiry form found below or phone the office on 080 093 3299.

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