Renewable Heat Incentive

The long awaited domestic RHI information about Renewable heat incentive domestic tariff rates are here!

The Renewable Heat Incentive (RHI) is a government scheme to encourage the uptake of renewable technologies by businesses, communities and householders through the provision of financial incentives.

These incentives will provide householders with quarterly payments to offset the cost of installing renewable technologies. With these reasons to switch to renewable energy, it now makes sound financial as well as environmental sense for every household to switch to renewables.

Renewable heat incentive tariff rates, domestic Air Source Heat Pumps (ASHP) will receive a tariff set at 10.49p per kW of renewable energy produced for 7 years. In practice this means that a typical domestic household will receive between £500 and £1500 per annum for 7 years which should meet most if not all of the cost of installing the pump. Unlike the feed-in tariff for Solar PV the amount of renewable energy produced will in most cases be “deemed” not measured.

Here is a RHI domestic tariff table example of how the scheme will operate for an Air Source Heat Pump:

The annual heat demand of the household will be taken from the EPC (Energy Performance Certificate) produced as part a Green Deal Assessment required to be eligible for the scheme.

(An existing EPC can’t be used). Let’s say it is 15,000kW. An Air Source Heat Pump can produce 3Kw of heat for every 1kW of electrical energy it uses so two thirds of the energy is deemed to be renewable (because the extra 2kW of heat are extracted from the air).

The RHI payable is therefore 10,000 (two thirds of 15,000) x 10.49p = £1049 x 7 years = £7343

Households which have more than one heating source will have to have a meter fitted to measure how much renewable energy they are actually using – where there is more than one heating source it is usually referred to as a bi-valent system.

Each technology has a different tariff to reflect the varying installation costs and savings to householders. The tariff for Solar Thermal is to set at a minimum of 20.66p, the tariff for Ground Source Heat Pumps is to be 20.46p and Biomass 6.74p.

In order to qualify the technology has to be an MCS registered product and to be installed and registered by an MCS registered installer.

Any customers of Yorkshire Energy Systems who already have an eligible technology will be contacted and guided through the process of applying for the RHI payments.

If you think you have an eligible technology and wish to apply or if you are thinking of having an eligible technology installed then follow this
link for more information: https://www.ofgem.gov.uk/environmental-programmes/domestic-rhi

Yorkshire Energy Systems Ltd can provide you with a free quote detailing what a renewable energy system would cost to install, how much you could reduce your fuel bill and how much you would receive from the RHI. If you would like someone to contact you for a free quote click here