What is the Renewable Heat Incentive?
The Renewable Heat Incentive (RHI), launched in April 2014, is a scheme designed to financially reward those who use renewable energy to heat their buildings. Details of the scheme – the first of its kind in the world – were unveiled by the UK government for England, Scotland and Wales.
There are two incentives: one for residential homes and one for the non-domestic sector (industrial, commercial, public sector and community organisations). The overall aim of the scheme is to help the UK further achieve its target of producing 12% of its heat from renewable sources by 2020.
The domestic part of the scheme launched on 9 April 2014. It offers regular ‘tariff’ payments to those using certain technologies to heat their homes. The amount of money that is paid depends on which technology you use – more payment details can be found on our RHI costs and earnings page.
Unlike the feed-in tariff, which is designed to provide income for households, RHI payments are instead meant to help offset the cost of installing and running a renewable heating system.
How do the Renewable Heat Incentive payments work?
After joining the RHI scheme, you receive a quarterly tariff payment for every kilowatt hour (kWh) of renewable heat you produce, for seven years. It’s possible for households to install more than one technology and receive payments for each system they use. Energy regulator Ofgem is responsible for dealing with applications and payments. Consumers whose homes are off the gas grid are the most likely to benefit from the domestic RHI scheme, by replacing their current heating system with a renewable one.
More accurate details of the payments you will receive will be estimated based on your home’s Energy Performance Certificate rating, and will be given upon completion of your Green Deal Assessment.
RHI technologies explained
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