What is RHI?
The Renewable Heat Incentive, or RHI as it is commonly known is a UK wide Government scheme set up to encourage households, communities and business to invest in renewable heat technologies. The Renewable Heat Incentive works by providing homes and businesses with financial incentives.
The RHI is the first of its kind in the world. The UK Government hopes that the RHI will contribute towards their 2020 target of 12% of heating originating from renewable sources.
Types of heating you can claim for include:
- heat pumps (ground source, water source and air source)
- deep geothermal
- solar thermal collectors
- biomethane and biogas
- combined heat and power (CHP) systems
Payments are made over 20 years for non-domestic RHI and 7 years for domestic RHI.
Domestic & Non- Domestic RHI
There are two different types of Renewable Heat Incentive available, domestic and non-domestic. They have separate tariffs, joining conditions, rules and application processes.
The domestic RHI was launched on 9th April 2014 and provides financial support to the owner of the renewable heating system for seven years. People who join the scheme and stick to its rules receive quarterly payments for seven years for the amount of renewable heat the system produces.
The amount of RHI income you receive will depend on a number of factors – including the technology you install, the latest tariffs available for each technology and – in some cases – metering.
You can estimate how much money you could earn through RHI using the Department for Business, Energy and Industrial Strategy’s RHI payment calculator.
The scheme administered by Ofgem covers England, Wales and Scotland. The scheme is largely targeted at off gas grid households, but gas grid households are also eligible to apply.
Non- Domestic RHI (Commercial RHI)
The non-domestic Renewable Heat Incentive (RHI) helps businesses, public sector and non-profit organisations meet the cost of installing renewable heat technologies.
The non-domestic RHI was introduced on 28th November 2011 and was then extended to domestic customers in April 2014. Similar to the Feed-In-Tariff (FIT), RHI cash payments are paid to owners who install renewable heat generation equipment in non-domestic buildings. These can include; hotels, holiday lets, zoos, farms, hospitals, schools, care homes, tourist attractions and community halls.
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