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The Domestic Renewable Heat Incentive

The Domestic Renewable Heat Incentive Scheme (Domestic RHI) was officially launched on Wednesday 9th April. It is a financial incentive from the government to encourage people to switch to renewable heating systems. If you are accepted for the Domestic RHI scheme, you will receive quarterly payments for seven years according to the amount of renewable heat that your heating system produces.

The Domestic RHI is, in general, for heating systems in single homes. The home needs to be eligible to have a domestic Energy Performance Certificate (EPC) and this is required for application to the scheme. The Domestic RHI is available for households both not connected and connected to mains gains. However, properties without mains gas are likely to benefit more from the scheme.

There are specific technical requirements that heating systems must meet in order to be eligible for the Domestic RHI scheme, but the types of heating system included are:
•    Biomass only boilers
•    Biomass pellet stoves with integrated boilers
•    Air source heat pumps
•    Ground source heat pumps
•    Solar thermal panels (flat plate or evacuated tube only, and only providing hot water, excluding heating swimming pools)

Your heating system also needs to be certified as MCS-approved (Microgeneration Certification Scheme) and installed by an MCS-accredited installer, such as Plumb-Line.

The application process
1.    We carry out a Green Deal Assessment on your property.
2.    If the Green Deal Advice Report recommends that you have loft or cavity wall insulation  installed, then this must be completed first, which we can help you with.
3.    You will need an up to date Energy Performance Certificate (EPC) to verify that sufficient insulation is in place.
4.    We install your renewable heating system and provide you with an MCS Certificate number
5.    You can then apply online for the Domestic RHI

Eligibility criteria
These are the general eligibility criteria, in some case other conditions apply.
1.    You must be the owner of an eligible heating system
2.    You must own or occupy the property in which the renewable heating system has been installed
3.    Your renewable heating system must be certified under the MCS scheme
4.    If your renewable heating system was installed before 9 April 2014 there are some time restrictions in place – ask us for details

Payments
In most cases, payments are based on an estimate of your heating system’s annual heat use. You will be paid per kilowatt hour of renewable heat and the tariff will depend on the type of technology. The tariff rates published on Ofgem’s website on 10 April 2014 are:

Biomass boilers and biomass stoves:

Air source heat pumps:  
Ground source heat pumps:
Solar thermal:
12.2p per kilowatt hour
7.3p
18.8p
19.2p        
       

Payments will be made directly into your bank account on a quarterly basis.

The tariff will be reviewed every quarter and may be reduced to new applicants if take-up for the scheme is larger than anticipated. If you’re thinking about switching to renewable energy, do it NOW, so you can gain most from the Domestic RHI Scheme. Contact us for more information or to arrange a Green Deal Assessment.