Renewable Heat Incentive (RHI)
The Renewable Heat Incentive (RHI) is the world’s first long-term financial support programme for renewable heat.
The RHI pays participants of the scheme that generate and use renewable energy to heat their buildings. By increasing the generation of heat from renewable energy sources (instead of fossil fuels), the RHI helps the UK reduce greenhouse gas emissions and meet targets for reducing the effects of climate change (The UK is committed to reducing its greenhouse gas emissions by at least 80% by 2050, relative to 1990 levels).
There are two different RHI schemes available (dependent on your circumstances):
- Domestic RHI – launched 9 April 2014 and open to homeowners, private landlords, social landlords and self-builders.
- Non-domestic RHI – launched in November 2011 to provide payments to industry, businesses and public sector organisations. The non-domestic RHI is also applicable to homeowners who are heating more than a single domestic property.
The Domestic RHI Scheme
The Domestic Renewable Heat Incentive (Domestic RHI) is a government financial incentive to promote the use of renewable heat.
Applicants that qualify for the domestic RHI receive quarterly payments for seven years for the amount of clean, green renewable heat their system produces.
The domestic RHI currently pays the following tariffs per unit of heat generated:
The Non-Domestic RHI
The Non-Domestic Renewable Heat Incentive (RHI) provides a subsidy, payable for 20 years, to eligible, non-domestic renewable heat generators based in Great Britain (subject to meeting the scheme rules).
Ofgem is responsible for implementing and administering the scheme on behalf of the Department of Energy and Climate Change (DECC).
The Non-Domestic RHI is open to the non-domestic sector including industrial, commercial, public sector, not-for-profit organisations and in some cases homeowners with eligible installations.
The non-domestic RHI currently pays the following tariffs per unit of heat generated: