Renewable Heating Incentive
Renewable Heating Incentive
The Renewable Heat Incentive (RHI) is a scheme designed to financially reward those who use renewable energy to heat their homes.
There are two Renewable Heat Incentives (RHI): one for residential homes and one for the non-domestic sector (industrial, commercial, public sector and community organisations).
The overall aim of the RHI scheme is to help the UK achieve its target of producing 12% of its heat from renewable sources by 2020. The scheme runs in England, Scotland and Wales. The domestic part of the RHI scheme launched on 9 April 2014. It offers regular ‘tariff’ payments to those using certain technologies to heat their homes.
Unlike the feed-in tariff, which is designed to provide income for households, RHI payments are meant to help offset the cost of installing and running a renewable heating system.
How Can You Benefit?
The value of Domestic and Non-Domestic tariffs you receive by installing a renewable system vary dependant on the technology. Each tariff is evaluated on a quarterly basis and are subject to degression, therefore to ensure you don’t miss out on the best tariffs and best financial benefits it is important to act early.
The best and easiest way to understand your financial benefits is to contact C2 Renewable Solutions for a, no obligation, free quotation.
The Domestic RHI
The Domestic Renewable Heat Incentive (RHI) provides guaranteed payments for seven years to offset the heat pump installations by self builders, homeowners and social landlords.
The domestic RHI’s purpose is to compensate for the cost of installing a ground source heat pump, providing a long term rate of return and fast payback.
In addition to this, end users will also benefit from the significant fuel cost savings brought with the installation of a safe, reliable, sustainable and renewable technology, providing a generous total benefit.
After joining the RHI scheme, you receive a quarterly tariff payment for every kilowatt hour (kWh) of renewable heat you produce. You get these payments for seven years. It’s possible for households to install more than one technology and receive payments for each system they use.
The Domestic Renewable Heat Incentive (RHI) is a UK Government financial support scheme for renewable heat, targeted at, but not limited to, off gas grid households.
The Non Domestic RHI
The Non-Domestic Renewable Heat Incentive (RHI) is a government environmental programme that provides financial incentives to increase the uptake of renewable heat by businesses, the public sector and non-profit organisations.
Eligible installations receive quarterly payments over 20 years based on the amount of heat generated. The scheme covers England, Scotland, and Wales.
Businesses, public sector and non-profit organisations can apply if equipment was installed in England, Scotland or Wales on or after 15 July 2009 (or later in some cases). Your installation must meet certain requirements.
Generally, if the renewable heating system is in commercial, public or industrial premises, then you would apply to 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.