What is the Renewable Heat Incentive?
The Renewable Heat Incentive (RHI) is a payback incentive to encourage homeowners to install a renewable energy heating system. The RHI scheme payments are made quarterly over 7 years. The idea of the incentive is to compensate the person for the additional outlay involved in fitting a renewable system.
The Renewable Heat Incentive is due to end on 30th March 2022 after which it is expected to be replaced with the Clean Heat Grant Scheme. If you are considering upgrading your heating system with a renewable heating system and wish to take advantage of the RHI, your application will need to be approved before the closing date.
The incentive covers domestic and commercial properties but you must use an MCS-certified supplier to qualify. R A Brown is fully accredited and offers free advice on the RHI as part of our comprehensive customer service.
Switching to the type of heating systems we install means you are using a naturally-replenished source of energy (i.e. the sun). Using renewable energy rather than oil or LPG helps the UK reduce its carbon emissions and the government pays an incentive to property owners that undertake the RHI scheme. They must, however, meet certain energy-efficiency requirements.
The scheme is being administered by OFGEM on behalf of BEIS (The department of Business Energy and Industrial Strategy).
Since it was launched there have been amendments to the scheme, the current reform amendments are subject to Parliamentary approval. For the current OFGEM factsheet on the changes to the Domestic RHI click here.
Applicants will need to make sure they install an eligible system and meet minimum insulation requirements to be eligible for the Domestic RHI and provide a valid Energy Performance Certificate (EPC) which is no more than 24 months old, the application must be made by the homeowner as this is an application based on your property details.
In addition, you will need to know the efficiency of your system. This includes the heat emitters (radiators or UFH) and heat source.
The governments default Seasonal Performance Factor (SPF) is 2.5. This figure is calculated by looking at heat losses, room size and output of the heat emitters. The more accurately sized the heat emitters the higher the SPF – as the heating will be as energy efficient as possible.
You can visit OFGEM’s website for information, or one of our experts can explain the ins and outs clearly and with your property in mind.
The Non-Domestic Renewable Heat Incentve (RHI)
The Non-Domestic Renewable Heat Incentive (RHI) was launched for non-domestic installations in November 2011. It helps businesses, public sector and non-profit organisations meet the cost of installing renewable heat technologies by providing financial incentives. To be eligible for this incentive, an MCS certified product must be fitted by an MCS certified installer.