Renewable Heat Incentive

Two schemes: Domestic and Non-Domestic

The Renewable Heat Incentive (RHI) has two schemes – Domestic and Non-domestic. Although they are both administered by Ofgem, they have separate tariffs, joining conditions, rules and application processes.

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About the Non-Domestic RHI

The Non-Domestic RHI is a Government environmental programme that provides financial incentives to increase the uptake of renewable heat. The RHI, which started in November 2011, provides payments for renewable heat energy generated over a 20 year period to eligible renewable heat generators (and producers of biomethane).

 The RHI has a cost-control mechanism, which means that tariffs could change between now and the point at which an installation has been commissioned and is able to apply for the scheme. The rules for this up to the end of March 2016 have been published by DECC. Once on the scheme, support levels are fixed for 20 years and adjusted annually for inflation.

Generally, if the renewable heating system is in commercial, public or industrial premises, then it is eligible for the Non-Domestic RHI. This can include small and large businesses, hospitals, schools, and organisations with district heating schemes where one heating system serves multiple homes.

The main scheme described here covers England, Wales and Scotland. Northern Ireland recently launched its own scheme, which has a number of significant differences.

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About the Domestic Renewable Heat Incentive 

The Domestic RHI is a government financial incentive to promote the use of renewable heat. The Domestic RHI scheme opened in April 2014. People who join the scheme and stick to its rules receive quarterly payments for seven years for the amount of clean, green renewable heat their system produces.

The Domestic RHI will pay the following tariffs per unit of heat generated for seven years:

The tariffs have been set at a level that reflects the expected cost of renewable heat generation over 20 years. Payments will be made on a quarterly basis.

The scheme is open to households both on and off the gas grid. People off mains gas have the most potential to save on fuel bills and reduce carbon emissions.

An EPC gives information about a property’s energy use, plus recommendations on how to reduce energy and save money. It is required every time you buy, sell or rent a property. It is also included as part of a Green Deal Assessment, which is a standard requirement for the Domestic RHI.

The Government has developed the Domestic RHI Payment Calculator to help you calculate how much income you might receive through the Domestic RHI – but it’s important to note that this tool only gives half the picture as it does not calculate the savings on your heating bills, only the payments from the RHI.

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