The Renewable Heat Incentive (RHI) is the world’s first long-term financial support programme for renewable heat. RHI is a UK government scheme that pays participants who generate and use renewable energy to heat their buildings. The government expects the RHI to make a significant contribution towards meeting targets for the reduction of greenhouse gas emissions and the effects of climate change.
Domestic RHI was launched 9 April 2014 and open to homeowners, private landlords, social landlords and self-builders.
Non-domestic RHI was launched in November 2011 to provide payments to industry, businesses and public sector organisations.
Domestic Renewable Heat Incentive
The domestic RHI is targeted at, but not limited to, homes off the gas grid. Those without mains gas have the most potential to save on fuel bills and decrease carbon emissions. The scheme covers single domestic dwellings and is open to homeowners, private landlords, social landlords and self-builders. It is not open to new build properties other than self-build.
RHI is funded through taxation, which means the budget for the scheme is set at each Government Spending Review. Expenditure for domestic RHI is controlled through degression, which works by gradually lowering the tariffs that are paid to new applicants as more renewable heating systems are installed.
Tariffs are only reduced as estimated spend on the domestic scheme reaches certain expenditure thresholds or “triggers”. Renewable heating systems that were installed between 15th July 2009 and 9th April 2014 will not be included towards the triggers.
The first time a trigger is hit, the tariff for that technology will be reduced by 10%. However, if a super trigger (around double the standard trigger) is hit, that tariff will be reduced by 20% (depending on growth from the previous quarter).
Domestic RHI Payment Calculator
The Department for Energy & Climate Change has a Domestic RHI Payment Calculator to help you calculate how much you might receive through the Domestic RHI Scheme.