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Renewable Heat Incentive Domestic

The domestic Renewable Heat Incentive is aimed specifically at householders

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 Renewable Heat Incentive to make a significant contribution towards their 2020 ambition of having 12 per cent of heating coming from renewable sources.

The scheme will pay you for each kWh of heat generated by eligible technologies such as ground source heat pumps, air source heat pumps, biomass and solar thermal systems. The scheme started in the spring of 2014 and payments will be made for seven years from when your application is approved.

Ofgem have published some renewable heat incentive factsheets on their website.
The current tariff level are as below:

Applications submitted Biomass boilers and stoves (p/kWh) Air source heat pumps (p/kWh) Ground source heat pumps (p/kWh) Solar thermal (p/kWh)
01/04/2016 – 30/06/2016* 5.20p 7.51p 19.33p 19.74p
01/07/2016 – 30/09/2016* 4.68p 7.51p 19.33p 19.74p
01/10/2016 – 31/12/2016* If any new tariff changes are to be made due to degression, the next announcement by DECC would be by 1 September 2016.

Applications will need to be supported by the following documentation where applicable:

An Energy Performance Certificate

MCS commissioning certificate

Greenfields can help by completing these assessments for you, making the whole process simpler. We are able to offer an EPC at a competitive rate through a third party

Below are some examples of potential RHI (your payments will be based on your EPC not our calculations):

Ground source heat pump installation in a 250 m2 house. (Well insulated)

A typical RHI payment calculation
Heat pump size 12kW
Eligible heat generated 19464kWh
Assumed Seasonal Performance Factor 3.4
Tariff (GSHP) £0.1933
Potential annual RHI £2,700
Potential annual fuel saving (against oil) £835
Value over 7 year scheme lifetime £24,745

Ground source heat pump installation in a 500 m2 house.

A typical RHI payment calculation
Heat pump size 40kW
Eligible heat generated 115000kWh
Assumed Seasonal Performance Factor 3.2
Tariff (GSHP) £0.1933
Potential annual RHI £15,282
Potential annual fuel saving (against oil) £4600
Value over 7 year scheme lifetime £139,174
Greenfields Heat and Power