What is it?
The Domestic Renewable Heat Incentive (Domestic RHI) is a government financial incentive to promote the use of renewable heat. Switching to heating systems that use naturally replenished energy can help the UK reduce its carbon emissions.
People who join the scheme and stick to its rules, receive quarterly payments for seven years for the amount of clean, green renewable heat their system produces.
Who’s it for?
The scheme’s open to anyone who can meet the joining requirements. It’s for households both off and on the gas grid.
People off mains gas have the most potential to save on fuel bills and reduce carbon emissions.
Domestic and Non-Domestic
The Renewable Heat Incentive has two schemes – Domestic and Non-Domestic. They have separate tariffs, joining conditions, rules and application processes.
The Domestic RHI
Key to joining is that the renewable heating system heats only a single property which is capable of getting a domestic Energy Performance Certificate (EPC). The EPC is the proof we need that the property is assessed as a domestic ‘dwelling’. Without one, you won’t be able to apply and can’t join the scheme.
An EPC gives information about a property’s energy use, plus recommendations on how to reduce energy and save money. It’s required every time you buy, sell or rent a property. It’s included as part of a Green Deal Assessment, which is a requirement for most to join the Domestic RHI.
No degression: 1 January 2018
BEIS has announced on 30 November that there will be no degression on 1 January 2018.
The Non-Domestic RHI
Generally, if the renewable heating system is in commercial, public or industrial premises, then you would apply to the Non-Domestic RHI. This can include small and large businesses, hospitals, schools, and organisations with district heating schemes where one heating system serves multiple homes.