UK Renewable Heat Incentive RHI

The RHI (the Renewable Heat Incentive)is a government backed scheme which offers regular financial rewards for owners of renewable technologies like:Solar thermal systems, air source source heat pumps and biomass systems.

The government have introduced the RHI to support the UK achieving its 2020 target for sourcing 15% of energy demand from renewable sources.Currently the use of fossil fuels to generate domestic heating and hot water accounts for about 15% of the UK’s total carbon emissions in comparison to only 2% of heat and hot water generation from renewable technologies(DECC ,2013). To comply with climate change targets by 2050 the current figure of 15% emission rates will need to go down to nearly zero. It is hoped that the scheme will develop the renewable heat market by making renewable technologies an affordable option that makes economic as well as environmental sense.

The scheme is split according to the commercial and domestic markets and there are differing pay schemes for renewable adoption within the commercial and domestic sector.

The commercial or non- domestic sector is defined as:

“…where a renewable heating installation serves a single private residential dwelling only. This does not include multiple residential dwellings served by one renewable heating installation (e.g. district heating) nor residential dwellings which have been significantly adapted for non-residential use. For example, a house where someone works or runs a business from home would be considered domestic whereas a house converted to be a shop or bed & breakfast would be considered non-domestic and could receive RHI support. This means that if a company, private landlord or registered social landlord installs single renewable heating units, in one or multiple residential dwellings, this would constitute a domestic installation and they will not be able to receive RHI tariffs from the outset, but will be able to claim from 2012.”

To find out more about each RHI please select a relevant link.

Domestic RHI

Commercial RHI