What is the renewable heat incentive?
The domestic renewable heat incentive was launched in April 2014 to provide financial support for households to install renewable heating in their homes.
How does the renewable heat incentive work?
The scheme pays out a tariff based on the amount of renewable heat generated.
How much does the renewable heat incentive pay out?
The tariffs are paid per kWh of renewable heat generated based on the following rates (typical payouts in a 12 month period in brackets):
- air source heat pumps: 7.3p/kWh (£850)
- biomass boilers and biomass pellet stoves with a back burner: 12.2p/kWh (£2,000)
- ground source heat pumps: 18.8p/kWh (£850)
- water source heat pumps: 18.8p/kWh (£850) and
- solar thermal: 19.2p/kWh (£400).
These rates will rise annually in line with inflation. The tariffs are paid out quarterly.
If you opt for a metering system, you will receive and additional payment of £230 per year for heat pumps or £200 per year for biomass boilers.
Does my home qualify for the Renewable Heat Incentive?
If your heating system was installed after 15 July 2009 you may qualify.
You must use an approved system that has been fitted by an installer who is MCS certified or equivalent (for example, Solar Keymark) and a member of the Renewable Energy Consumer Code (RECC).
The Ofgem website provides an up-to-date list of approved systems.
Before applying for the RHI you will have to have a Green Deal Assessment. You will be expected to install loft and cavity wall insulation if this measure has been identified in your Green Deal assessment.
How do I apply for the Renewable Heat Incentive?
You can apply online at the Ofgem website.
Is the Renewable Heat Incentive worth it?
Households that are off mains gas and that install any of the approved systems could save on their energy bills plus receive a quarterly payment under the scheme.
Households that use mains gas will benefit from greater energy security and will be protected from fluctuations in gas prices.
The cost of installing many of the approved systems is likely to be substantial (A good biomass boiler can cost in excess of £10k).
Where can I get further Renewable Heat Incentive Advice?
Check out the Ofgem domestic RHI factsheet which has been prepared for people considering or intending to apply.
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