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The long awaited Domestic Renewable Heat Incentive went live back in April 2014. This Government scheme pays homeowners up to 19.2p/kwh of heat generated from renewable sources to heat their homes. We are pleased to provide a summary of the scheme below.
What is it?
It is a payment for renewable heat generated by biomass boilers, solar thermal installations, air source heat pumps and ground source heat pumps supplying single domestic properties.
Why should you be interested?
In addition to the environmental credentials of renewable energy and heating your home from sustainable fuels rather than gas or oil, you will be paid for every unit of heat you consume and will reduce your heating bills. Below is a breakdown of the fuel costs of the most commonly used heating fuels:
Fuel |
Gross KWh |
Net KWh |
Cost (per unit) |
P per KWh |
Wood pellet |
4800 |
4080 |
£180 per tonne |
4.4 |
Wood chip |
3400 |
2890 |
£100 per tonne |
3.5 |
Kerosene |
10.3 |
8.755 |
£0.65 per litre |
7.4 |
Gas oil |
10.8 |
9.18 |
£0.75 per litre |
8.2 |
LPG |
7.1 |
6.035 |
£0.40 per litre |
6.6 |
Mains natural gas |
1 |
0.85 |
£0.032 per KWh |
3.8 |
Electricity |
1 |
1 |
£0.13 per KWh |
13.0 |
How much does it pay?
Tariff (pence per KWh of renewable heat) | |
Biomass Boilers and Biomass Stoves | 12.2p |
Air Source Heat Pumps | 7.3p |
Ground Source Heat Pumps | 18.8p |
Solar Thermal | 19.2p |
If the cost of technology decreases or if uptake of the scheme is higher than expected, these figures will be reduced. It is therefore worth taking advantage of the RHI sooner rather than later.
Once you have joined the scheme you will receive payments for 7 years, fixed at the tariffs at the time you are accredited. These tariffs will be reviewed each year in line with the retail price index to keep them in line with inflation.
Am I eligible?
If you answered yes to the above questions, you are eligible to receive the Renewable Heat Incentive.
Do I need a meter?
Generally speaking, no you don’t.
A meter is only needed if you live in the property for part of the year, still use a backup heating system or your new heating system only supplies part of the property. In these instances you will need a meter.
I installed an eligible heating system before the scheme was launched, can I still apply?
If it was installed after 15th July 2009, yes you can still apply, however, the installation must have been certified under the Micro Generation Certification Scheme at the time.
Previously the Government offered a payment under the Renewable Heat Premium Payment Service, even if you did claim these payments you can still apply to the Renewable Heat Incentive
If you have an existing installation, you must apply before the 9th April 2015 when the retrospective applications will be closed. The scheme remains open thereafter to new installations only.
What if I own two properties heated by a single system?
If you own more than one residential property or a commercial property which you intend to heat from a renewable source, you should apply for the Non-Domestic Renewable Heat Incentive.
The RHI can provide a significant source of income to off set fuel bills and some installation costs so if you have installed a renewable heating system or are considering doing so and would like further advice, please contact Chris Thyer or Calum Gillhespy on 01748 829210.