Approved installer

Grants

Renewable Heat Incentive (RHI)

The Renewable Heat Incentive (RHI) is a UK Government scheme set up to encourage uptake of renewable heat technologies among householders, communities and businesses through the provision of financial incentives. The UK Government expects the RHI to make a significant contribution towards their 2020 ambition of having 12 per cent of heating coming from renewable sources. The Renewable Heat Incentive is the first of its kind in the world.

RHI provides financial incentives to eligible, non-domestic renewable heat generators and producers of biomethane, for the life of the installations or up to a maximum of 20 years.

Non-domestic sectors include industrial, commercial, public and non-for-profit sectors. A non-domestic installation might be a large-scale industrial heating systems or a smaller community heating project.

The domestic RHI is a UK Government financial support scheme for renewable heat, targeted at, but not limited to, off gas grid households.

The domestic RHI scheme covers England, Wales and Scotland and will be administered by Ofgen guidance will be available before the launch of the scheme on how to apply and the information that will need to be provided.

The scheme will cover single domestic dwellings and will be open to owner-occupiers, private landlords, Registered Providers of Social Housing, third party owners of heating systems and self-builders. It will not be open to new build properties other than self-build fit will be open to anyone in these groups who installed an eligible technology since 15th July 2009, provided they meet the scheme criteria

For those who have installed a renewable heating system before the launch of the scheme in Spring 2014 and since 15 July 2009 (legacy applications), the date they can submit their application may not be from when the scheme first opens and will be phased over time. Further details on the phasing will be provided by Ofgem prior to launch

The financial support will be paid at a set rate per unit of renewable heat produced (kilowatt hour or kWh), for seven years, to the owner of the heating system

  • the scheme will support air source heat pumps (ASHP), biomass systems, ground source heat pumps (GSHP) and solar thermal technologies. The support rates will vary depending on the technology installed

 

Air source heat pump

Biomass

Ground source heat pump

Solar thermal

Tariff (p/kWh renewable heat)

7.3

12.2

18.8

19.2

  • for biomass the renewable heat generated will be based on an estimated figure of heat demand from an Energy Performance Certificate (EPC)
  • for heat pumps the renewable heat generated will be based on an estimate of the heat demand from an EPC combined with an estimate of the heat pump's efficiency
  • for solar thermal systems the renewable heat generated will be based on the estimate of system performance completed as part of an Microgeneration Certification Scheme (MCS) installation
  • to help improve performance of renewable heating systems, there will be an extra incentive for applicants who install metering and monitoring service packages, of £230 per year for heat pumps and £200 per year for biomass boilers
  • to be eligible the system must be certified under the Microgeneration Certification Scheme (MCS) scheme and meet relevant standards for each technology
  • all applicants are required to complete a Green Deal Assessment (GDA) before applying and to ensure they meet minimum energy efficiency requirements of loft and cavity insulation where required by the GDA
  • any public grants previously received, including RHPP, will be deducted to avoid a double subsidy

Tariffs will change annually in line with the Retail Price Index (RPI) Key changes have been made to the householder stream of the Renewable Heat Premium Payment (RHPP) announced by the Department of Energy and Climate Change on 20 May 2013.

As part of the Department of Energy and Climate Change's desire to further support the growing market for domestic renewables, the Government has considered new data available on installation costs/recent feeedback from industry and has decided to increase the voucher levels for each of the four eligible technologies. The new levels are:

 

Air source heat pump

Biomass

Ground source heat pump

Solar thermal

Tariff (p/kWh renewable heat)

7.3

12.2

18.8

19.2

These levels will be effective for voucher applications made on the Energy Saving Trust (EST) website from 20 May 2013.  We hope the additional money available will encourage even more people to consider switching to renewable heating.

In addition, new applicants from 20 May 2013 will also be required to undertake a Green Deal Assessment before submitting a claim for payment of their voucher. The Assessment will help consumers to choose the most appropriate new technology for their home and circumstances. As the voucher levels are being increased, this additional money will cover the costs of an Assessment.

Key changes have been made to the householder stream of the Renewable Heat Premium Payment (RHPP) announced by the Department of Energy and Climate Change on 20 May 2013.

As part of the Department of Energy and Climate Change's desire to further support the growing market for domestic renewables, the Government has considered new data available on installation costs/recent feeedback from industry and has decided to increase the voucher levels for each of the four eligible technologies. The new levels are:

Technology

Voucher value

Air-to-Water Heat Pump

£1,300 

Biomass Boiler

£2,000

Ground or Water-source Heat Pump

£2,300

Solar Thermal Hot Water

£600

Feed-In Tariffs scheme (FITs)

If you install an electricity-generating technology from a renewable or low-carbon source such as solar PV or wind turbine, the UK Government's Feed-In Tariffs scheme (FITs) could mean that you get money from your energy supplier.
You can be paid for the electricity you generate, even if you use it yourself, and for any surplus electricity you export to the grid. And of course you'll also save money on your electricity bill, because you'll be using your own electricity.
Feed-In Tariffs were introduced on 1 April 2010 and replaced UK government grants as the main financial incentive to encourage uptake of renewable electricity-generating technologies. Most domestic technologies qualify for the scheme, including:

  • solar electricity (PV) (roof mounted or stand alone)
  • wind turbines (building mounted or free standing)
  • hydroelectricity
  • anaerobic digesters
  • micro combined heat and power (CHP).