Renewable Heat Incentive FAQs
The Government has now officially launched a new incentive for renewable heating products called the Domestic Renewable Heat Incentive (RHI).
To help householders find out if they can benefit, leading UK boiler manufacturer Baxi, has prepared this useful guide.
What is the Domestic RHI?
The Domestic RHI is a financial incentive designed to encourage people to switch to renewable heating systems.
The key benefit is that if you install approved technology in your home, and follow the rules of the scheme, you can receive quarterly payments for the amount of energy you produce.
What technologies are eligible for the Domestic RHI?
Am I eligible?
The scheme is open to owner occupiers, landlords and some private tenants.
To be in with a chance of a grant, you need to have a renewable heating system, which fits the specific requirements of the incentive and is fitted by an MCS (Microgeneration Certification Scheme) accredited installer.
I already have a renewable heating system installed in my home and have had for some time now - am I still eligible for the scheme?
The scheme is valid for anybody who has installed renewable technology since 15 July 2009. But, to claim for the Domestic RHI, it must have been installed by an MCS accredited installer and the technology must be MCS accredited too.
You need to act fast as applications for those with existing systems will only be accepted during the first year of the scheme; after that only householders installing a new renewable system can apply.
How will the scheme benefit me?
There are many benefits to the RHI, including:
- Quarterly tariff payments for up to seven years for the energy the renewable product generates
- Helping to keep your energy costs down
- Reducing your carbon footprint
How do I apply?
There are several important steps that you need to complete to ensure you are eligible for the Domestic RHI:
- You must have a Green Deal assessment carried out on your home - the title="Find out more about the Green Deal">Green Deal is another Government initiative which enables people to make energy-saving improvements to their homes without having to pay costs upfront.
- Your home must be well insulated and where the Green Deal report recommends installing insulation, you must comply.
- You will also need an up-to-date EPC certificate to prove that you have fitted the insulation.
- For more details on the eligibility criteria and to apply, visit Ofgem's website.
How do the quarterly tariff payments work?
If you have already received a Government grant, such as the Renewable Heat Premium Payment (RHPP), this will be deducted from your RHI payment, to prevent double subsidies.
For most people the Domestic RHI payments will be based on an estimation of your heating system's annual heat use. Some householders, for example those with a back-up heating system such as an oil boiler and those with a property occupied less than half a year, may have to install meters and submit regular readings. The payments will then be based on these figures.
What else do I have to do when I get Domestic RHI?
Once Ofgem is satisfied that you are eligible for RHI, you will have to comply with the rules of the scheme. These include, but aren't limited to:
- Keeping your renewable heating system in good working condition.
- Informing Ofgem if anything breaks down or if you make any changes to the heating system i.e. replacing a part.
- Informing Ofgem if you sell your house - in which case payments will switch to the new home owner, should they also apply for the scheme.
Baxi has a range of MCS certified renewable heating products that could help you benefit from the Domestic RHI.