Renewable Heat Incentive

The Renewable Heat Incentive (RHI) scheme was launched back in 2014 by the government and, since then, has provided homeowners with payments on heat generated through renewable technologies. These payments are designed to provide both a return on investment as well as a financial incentive for adopting more efficient ‘off the grid’ solutions.

Who can apply for the RHI scheme?

The scheme is open to homeowners and landlords, and there are four heating systems which are eligible for the RHI scheme. For specific products and systems, Ofgem’s official Product Eligibility List provides all you need to know.

If you already had an eligible technology installed before the RHI’s launch date (9th April 2014), then you are no longer able to apply for the scheme as a ‘legacy’ applicant. The exception is eligible cooker stoves – if yours was installed before 1st August 2014 then you have until the end of July 2015 to put in your legacy application.

The Eligible Technologies and Tariff levels

Technology  Tariff (p/kWh of renewable heat)
Ground/Water Source Heat Pumps 19.10p
Air Source Heat Pumps 7.42p
Biomass Boilers 7.14p
Solar Thermal Panels 19.51p

How much will I get paid and for how long?

The tariff will be paid quarterly for 7 years (28 payments) and is linked to the retail price index (RPI). The rates are based on technology efficiencies; technology lifetimes; and the cost of financing.

Some rates may be affected by what is known as degression, which is the process of lowering tariff rates depending on the uptake to the scheme versus the approved budgets. A full explanation is found on the government’s Ofgem website.

In most cases the RHI will have covered the cost of installing the system by the end of the scheme; a member of the SolarTech team will be able to advise you on how much your system can earn you.

What else do I need to do?

All applicants will need to have a Green Deal assessment of their home. If loft and cavity wall insulation are recommended by the assessment, you will need to install these and then obtain an updated energy performance certificate (EPC). SolarTech will be able to assist to ensure you have everything in place prior to your application.