Please note that this page contains information and links most relevant for people living in England, Scotland, Wales.
Please note: the Renewable Heat Incentive closes to new applications on 31 March 2022.
Customers starting their renewable heating installation and RHI application in early 2022 may struggle to complete before this deadline.
If you live in England, Scotland or Wales, you may be eligible for the UK Government’s domestic Renewable Heat Incentive (RHI) scheme. Under the scheme, you will receive quarterly cash payments over seven years if you install or have already installed an eligible renewable heating technology if you apply in time.
The Renewable Heat Incentive is not available to residents in Northern Ireland.
What is the Renewable Heat Incentive?
The Renewable Heat Incentive is a UK Government scheme aiming to encourage uptake of renewable heat technologies amongst householders, communities and businesses through financial incentives, and increase heating coming from renewable sources.
The UK Government’s Department for Business, Energy and Industrial Strategy (BEIS) makes key policy decisions and energy regulator Ofgem E-Serve administers the scheme.
Applicants normally had up to 12 months to apply to the scheme from the first commissioning date shown on the MCS certificate. However, the RHI will close to applications after 31 March 2022.
It will not be possible to apply after this date, even if your system was commissioned less than twelve months before.
If you have already installed a renewable heating system that was commissioned on or after 1 March 2019, you can now apply for domestic RHI payments, until the scheme closes (ie before midnight on 31 March 2022).
If you have already installed a renewable heating system that was commissioned on or after 1 March 2019 and had an application rejected for not meeting the 12 month rule, you can reapply to the scheme (before midnight on 31 March 2022).
Customers starting their renewable heating installation and RHI application in early 2022 may struggle to complete before the 31 March 2022 deadline.
We have given some information on eligibility criteria here – including additional requirements for biomass systems (below). Further guidance on domestic RHI eligibility criteria can also be found on Ofgem’s site.
To be eligible for RHI payments all renewable technologies must be:
Listed as a Microgeneration Certification Scheme (MCS) certified product.
Biomass pellet stoves with integrated boilers providing space heating*.
Ground to water heat pumps.
Air to water heat pumps.
Solar thermal panels (flat plate or evacuated tube only) providing hot water for your home.
Water source heat pumps can potentially be eligible for the domestic RHI – they are included in the definition of a ground source heat pump.
Certain cooker stoves and high temperature heat pumps may also be eligible.
* See additional requirements for biomass systems below.
The domestic RHI does not support air to air heat pumps, log stoves, pellet stoves without back boilers and hybrid photovoltaic thermal hybrid solar collectors (PVT).
Additional requirements for biomass systems
For a biomass system to be eligible for RHI payments you must also:
Have a RHI Emissions Certificate. You can check the RHI EC List to see if a product is certified.
Use biomass fuel purchased from an approved sustainable wood fuel supplier**. Check UK Government’s Biomass Suppliers List (BSL) for registered supplier of biomass wood fuel meeting RHI requirements.
**It is advisable to check whether your fuel supplier is registered before entering into a long-term supply contract. Not all fuels from BSL suppliers are sustainable as they may supply more than one type of fuel. You should check with your supplier, or prospective supplier, which of their fuels are registered.
Who can apply for RHI?
Owners of an eligible technology that own and/or occupy the property it is installed in can apply for RHI support. This can include self-builders, private landlords and registered providers of Social Housing (provided they meet eligibility criteria).
Single domestic dwellings are covered.
RHI support is not usually available to new build properties (other than self-build projects).
There are limits on the amount of space heating a house can receive payments for. The heat demand limits are set at 20,000kWh for ASHPs, 25,000kWh for biomass boilers and stoves and 30,000kWh for GSHPs. There is no limit for solar water heating systems.
For heat pumps, if the deemed demand is more than the capped limit then you will be paid the unit tariff multiplied by the amount of renewable heat that contributes to the capped demand.
Please see the following guidance from Ofgem for more information about these changes, and full criteria for your system.
If you have questions about an existing domestic RHI application or a system already approved for domestic RHI payments please contact Ofgem e-Serve, the scheme administrators, at 0300 003 0744 (Monday – Friday) or by emailing email@example.com. You can find their telephone opening hours on Ofgem’s website.
Assignment of Rights (AoR)
The introduction of ‘assignment of rights’ (AoR) is an option to help householders and landlords access finance to overcome the barrier of the upfront cost of a renewable heating system.
Assignment of rights allows an ‘investor’ to help fund the purchase, installation and maintenance, of a household or landlord’s renewable heating system. Households and landlords are then able to assign their RHI payments to the investor, who is referred to in the RHI Regulations as the ‘nominated’ investor. This came into effect on 27 June 2018.
What could I earn using RHI?
Successful applicants will receive RHI payments quarterly over seven years. The amount received will depend on a number of factors – including the technology you install, the latest tariffs available for each technology and – in some cases – metering.
You can estimate how much money you could earn through RHI using the Department for Business, Energy and Industrial Strategy’s (BEIS) RHI payment calculator.
How do I apply for RHI?
The scheme will remain open to applications until 31 March 2022 and you can apply via Ofgem’s website. Providing you have all the relevant information to hand and your application doesn’t need to be manually reviewed, you should receive an immediate decision.
If you are unable to apply online, contact Ofgem’s Domestic RHI Applicant Support Centre on 0300 003 0744 (Monday – Friday) or email: domesticRHI@ofgem.gov.uk. You can find their telephone opening hours on Ofgem’s website.
To apply you will need:
MCS installation certificate number for the heating system.
These tariffs are set by the UK Government at a level designed to compensate for the difference between costs of installing and operating renewable heating systems and fossil fuel systems, including non-financial costs such as disruption, based on 20 years of heat produced. Fossil fuel costs used are those for off-gas households.
Ofgem will make payments on a quarterly basis for seven years. Normally the heat required to heat the property is deemed (estimated) and payments based on this amount.
Biomass – renewable heat generated by biomass will be based on an estimated heat demand from an EPC (up to the limit for this technology).
Heat pumps – renewable heat generated by heat pumps will be based on an estimate of the heat demand from an EPC (up to the limit for this technology) combined with an estimate of the heat pump’s efficiency.
If you are metered for payment your RHI payments will be based on meter readings (up to the heat demand limit for this technology).
Solar thermal systems – renewable heat generated by solar thermal systems will be based on the estimate of system performance completed as part of a Microgeneration Certification Scheme installation.
Elements affecting payment
Once you are receiving Domestic RHI payments, the rate you get will change annually. For new installations, the rates are adjusted every year in line with the Consumer Prices Index (CPI).
The RHI scheme uses a ‘degression’ system designed to manage the scheme budget available for the domestic RHI. From time to time, the tariff for a technology will be reduced (for new applicants only) if the total amount being claimed in total for that technology reaches a certain level. Anyone who is already claiming domestic RHI will not have their tariffs reduced through degression.
If you have already received a grant from Government or public funds you will be asked to declare this when applying for the domestic RHI. The amount received will be taken into account when calculating your payments.
Examples of Government or public funding include funds from the Energy Company Obligation (ECO), Warmer Home Scotland (WHS) support and any cashback received alongside a Home Energy Scotland (HES) Loan. This is not an exhaustive list of public funding that should be declared.
There are two types of metering that you may need on the domestic RHI scheme: metering for payment and metering for performance.
Metering for payment
Most domestic systems payments will be based on an estimated heat output (‘deeming’) but in some cases, Ofgem may base payments from metered output. The most common scenarios for this requirement are:
You have ‘back-up’ heating or a heating system designed to only partially heat the property.
The property is occupied for less than half the year.
There are other scenarios where metering for payment is a requirement though, and we suggest reviewing Ofgem’s Essential Guide to Metering for a full list.
Metering for performance
Changes to the domestic RHI mean that heat pumps registering for the scheme from 22 May 2018 must meter for performance. If you’re only required to have metering for performance, you will continue to receive payments based on ‘deemed’ heat demand, as determined by your Energy Performance Certificate or heat demand limit.
Further details can be found in Ofgem’s factsheets:
Metering and Monitoring Service Packages are an optional form of monitoring you could choose to provide peace of mind that your renewable heating system is working as expected.
The package works like a service contract between you and your installer, providing data and analysis to check the system is working efficiently.
A limited number of MMSPs are available for air source heat pumps, ground source heat pumps and biomass pellet boilers only. Applicants that successfully register for an MMSP will be paid additional support to help cover the cost of installing and operating the package.
You can register for MMSP when you apply to the domestic RHI scheme or afterwards. If you are successful, you will receive MMSP payments alongside your quarterly RHI payments.