Renewable Heat Incentive – A new government backed scheme designed to help reduce the UK’s carbon emissions generated by the heating of our homes and hot water
Tax Free Payments! – The RHI pays owners of renewable heating systems, quarterly tax free tariff payments for seven years
Generous Payments – In many cases a surplus tax free profit is made, after repaying the costs to have the measure installed
Free Survey & Design – Receive a free survey, financial analysis and bespoke design of your Heating System by our own in-house experts
The Renewable Heat Incentive (RHI)
The Renewable Heat Incentive is a financial support scheme offered to owners of renewable heating systems. Paid quarterly over a seven year period, the purpose of the RHI is to effectively support and reward those households installing renewable heat technology as opposed to those opting for a conventional fossil fuel alternative.
The RHI scheme is designed to cover the additional costs of installing a renewable heat technology instead of a fossil fuel alternative. Tariff payments can range in the overall support they provide, most will certainly cover the full cost of the either product or the installation with some even able to cover both elements for the system owner.
Running since April 2014 and administered by the energy regulator Ofgem the RHI is ever increasing in its stature and will remain open for applications to those eligible until at least 2021.
How it works
The amount of support a renewable heat technology owner can receive under the RHI is dependent on a number of factors. Firstly the technology installed will determine which tariff rate the owner will be applicable for at that time. Secondly the type of property this technology is installed within plays a part as the deemed heat load will be multiplied against the technology’s efficiency and the amount of heat likely to be generated by the technology in order to calculate the total support available to the system owner.
Paid quarterly over a seven year period, payments will fluctuate annually in line with the Retail Price Index (RPI). An indication of the payment you will receive as a prospective renewable heat technology owner can be provided by our in house experts.
Who is eligible for the RHI?
The domestic RHI will provide financial support for an eligible renewable heating system that supplies a single dwelling. The payments will go to the owner of the system itself with individuals such as a property’s owner or occupiers, self-builders, private landlords, registered social landlords and third party owners of the renewable heating system.
Under the scheme a self-build is determined by those individuals who have built or commissioned a property or home for their own use. An individual can also own more than one renewable heating system, though as this is not defined as their primary residence, metering equipment will be installed to measure the exact amount of renewable heat used with the financial support being paid in accordance with this usage.