ECO IncentiveRenewable energy solutions

Domestic Renewable Heat Incentive (RHI)

The Renewable Heat Incentive is a Government financial incentive scheme to promote renewable heat generation in the UK.

On the 20th September 2012 DECC published the long awaited consultation setting out details for the proposed Domestic RHI which is due to launch in summer 2013.

The RHI is aimed at householders looking to replace their current heating with a renewable energy system and will be open to all owner-occupiers and private landlords, including householders who may have installed such systems since 15th July 2009. Those who have received the Renewable Heat Premium Payment (RHPP) can still apply for the RHI.

The technologies proposed to be included along with the indicative tariffs are as follows:

Technology

Indicative Tariff

Air Source Heat Pumps (Air to Air only)

6.9-11.5p/kWh

Ground Source Heat Pumps

12.5-17.3p/kWh

Biomass Boilers

5.2-8.7p/kWh

Solar Thermal

17.3p/kWh

Eco Incentive

All technologies will need to be MCS certified and must meet relevant required standards. All technologies will also need to be fitted by MCS approved installers.

It is also proposed that the tariff levels are set to be more financially advantageous to those homes off the gas grid, although DECC propose that the scheme be open to any home in the UK wishing to make the transition.

In the majority of cases, DECC propose that payments would be made on the basis of deemed heat usage over a period of 7 years for heat generated over 20 years.

To receive the domestic RHI your property will be required to meet a thermal efficiency standard which is intended to be connected to the Green Deal assessment.

As we are currently in the consultation stage these proposals may change based on the consultation responses.

The Government are keen to receive suggestions and comments on the consultation of the domestic RHI. Online responses are preferred and can be submitted via DECC’s consultation hub.

Alternatively you may email DECC at: domesticrhi@decc.gsi.gov.uk