Renewable Heat Incentive (RHI)

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 RHI to make a significant contribution towards their 2020 ambition of having 12 per cent of heating coming from renewable sources. The Renewable Heat Incentive is the first of its kind in the world.There are two phases to the introduction of the RHI:

  • Phase 1: the RHI for non-domestic installations in the industrial, business and public sectors.
  • Phase 2: the domestic element of the RHI, introduced in spring 2014.
 

Phase 1 – Non-domestic RHI scheme

Phase 1 of the RHI provides financial incentives to eligible, non-domestic renewable heat generators and producers of biomethane, for the life of the installations or up to a maximum of 20 years.Non-domestic sectors include industrial, commercial, public and non-for-profit sectors. A non-domestic installation might be a large-scale industrial heating systems or a smaller community heating project.Ofgem is responsible for administering the scheme. Find out about eligibility criteria and the application process at Ofgem’s RHI page.

For comprehensive insight into the eligibility requirements for the scheme, download volume one of the Guidance document from Ofgem..

 

Phase 2 – Domestic RHI scheme

The domestic RHI provides financial incentives to owners of eligible, renewable heating systems on their homes. It supports air source heat pumps (ASHP), biomass systems, ground source heat pumps (GSHP) and solar thermal technologies with tariffs varying depending on the technology.

The domestic RHI is open to owner occupiers, private landlords, Registered Providers of Social Housing and self-builders who have installed an eligible technology since 15th July 2009, provided they meet the scheme criteria.

Successful applicants will receive quarterly payments for seven years. Any public grants previously received, including the Renewable Heat Premium Payment (RHPP), will be deducted to avoid a double subsidy.

The scheme covers England, Wales and Scotland only.

Ofgem is responsible for administering the scheme which opened in Spring 2014. Find out about eligibility criteria and the application process by visiting Ofgem.

If your home is in Scotland, please click here for more information and support.

Last updated April 2014.

 

Before you start...

If you're thinking about installing a system to generate your own heat, make sure your home is as well insulated as it can be so your heat-producing system can be most efficient.

Focus on improving insulation and tackling draughts.