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Domestic Renewable Heat Incentive

About the Domestic Scheme

The Domestic Renewable Heat Incentive (RHI) launched on April 9th 2014. The scheme has been designed to drive forward uptake of renewable heat technologies in homes across Great Britain to cut carbon, help meet renewables targets and save money on fuel bills.

RHI Tariff 

In November 2015, the UK government renewed its commitment to the transition to a low carbon economy, by confirming a continued budget for the RHI out to 2020/21. Following a series of consultations from March-April 2016, the government finalised a package of reforms to the RHI schemes in December 2016. The General Election announcement delayed the plans to implement the proposed changes to the scheme.

Subject to Parliamentary approval, the changes to the scheme Regulations that were announced in the consultation response are planned to be introduced in two stages. It has now been decided that the government's raft of changes to its world's first Renewable Heat Incentive will be implemented on September 20, 2017, whilst declaring intentions for more of the proposed changes to follow later in 2017/18. These changes include: tariff uplifts for air source heat pumps (ASHP), ground source heat pumps (GSHP), and biomass plants; and the introduction of annual heat demand limits for ASHPs, GSHPs, and biomass plants. The changes being implemented includes new non-domestic biomass tariffs, new domestic tariffs, domestic heat demand limits, and provisions to extend these to anyone accredited since December 14, 2016. The amendments will also extend the scheme’s budget management mechanisms until July 2018. 

The Department for Business, Energy and Industrial Strategy (BEIS) has subsequently announced that no tariff degressions will be applied to either the domestic or non-domestic scheme on October 1, 2017, with the next potential degressions being applied January 1, 2018.

Below is a table of the domestic RHI tariff as of September 20, 2017, along with the historical RHI rates:

Applications submitted Biomass boilers and stoves (p/kWh) Air source heat pumps (p/kWh) Ground source heat pumps (p/kWh)
01/04/2017-30/06/2017* 4.28p 7.63p 19.64p
01/07/2017 - 19/09/2017 3.85p 7.63p 19.64p
20/09/2017-31/12/2017* 6.54p 10.18p 19.86p
01/01/2018 - 31/03/2018 If any new tariff changes are to be made due to degression, the announcement by BEIS would be made by 1 December 2017.

* these tariffs were adjusted in line with CPI

Eligible Applicants

The scheme is available to people who own the homes they live in, private and registered social landlords and self-builders. Anyone who has installed an eligible renewable heat technology since 15 July 2009 and meets the scheme eligibility criteria should be able to join.

Application Process Energy Performance Certificate (EPC)

In order to be eligible for the Domestic RHI, you will need to have had an Energy Performance Certificate (EPC). The EPC is the proof Ofgemneeds to prove that your property is assessed as a domestic ‘dwelling’. Without one you can’t apply and won’t be able to join the scheme.

In order to gain an EPC, applicants need to have completed a Green Deal Assessment. Applicants must ensure they have met minimum loft (250mm) and cavity or solid wall insulation requirements, where appropriate. From the Green Deal Assessment, an Energy Performance Certificate (EPC) is issued as proof of measures having been made and define the heat demand for the property.

Eligible biomass boiler heating systems

RHI domestic supports a range of renewable heating technologies including biomass only boilers and biomass pellet stoves with back boilers up to 45kW. Emission levels from September 2013 must be below a maximum 30g/GJ particulate matters and 150g/Gj Nitrogen Oxide.

All installations and installers must be Microgeneration Certification Scheme (MCS) certified (or certified by an equivalent scheme). MCS certified installers are currently required to be members of the Renewable Energy Consumer Code, which is backed by the Trading Standards Institute. 

Wye Valley supplies a range of biomass boilers suitable for the domestic RHI scheme. Please see our full range of Effecta & Guntamatic biomass boilers for details. Or why don't you give us a call with your project and we'll be more than happy to guide you to the best and most suitable product for your needs and budget.