Financial support for homeowners installing renewable heating systems.
What is the Domestic RHI?
The Renewable Heat Incentive, or RHI, is the government scheme to encourage the shift to low carbon and renewable heat technologies.
If your installation is eligible for the scheme, you will receive quarterly payments for seven years for the amount of clean, green renewable heat the system produces. This can often be tens of thousands of pounds over the 7 year period.
The domestic RHI has been designed as a ‘boiler replacement scheme’. As such, the payments are intended to bridge the costs between the installation and running costs of fossil fuel heating systems and the renewable alternatives.
How much are the payments?
Homeowners are paid per kWh of renewable heat generated, for seven years. The amount of heat generated from your installation will be ‘deemed’. This is an estimate of the property’s expected annual heat usage (to avoid the cost of metering). You multiply the deemed heat load of renewable heat by the tariff rate to calculate the annual payments.
The tariff for applications made up to 31st March 2017 is 6.44p/kWh.
Once your RHI application is accepted, you are guaranteed that rate, plus inflation, for the next 7 years.
For biomass the estimated heat use of a property will be taken from the energy performance certificate (EPC).
When are payments made?
Payments will be quarterly, in arrears, by Ofgem. Payments will change annually in line with the Consumer Prices Index (CPI). While paid over a seven year period, the rates have been calculated over the expected 20 year life of the systems.
Is the RHI index-linked?
Yes, tariffs will change annually in line with the Consumer Prices Index (CPI). Changes will come into effect on 1 April each year. Prior to 1st April 2016 the tariffs changed according to the Retail Prices Index (RPI).
When will rates change?
A degression scheme has been put in place to manage the RHI budget. This means that tariff levels for new applicants will decrease by 10 or 20 per cent once specified amounts of the budget have been spent. The government will check every quarter to see if triggers are met. If they are, a month’s notice of the tariff reduction will be given. Degression will be per technology, not for the scheme over all, so that one technology is not allowed to dominate the budget. A formal reviews was carried out in 2016 and changes to the scheme for new entrants will be implemented from 2017. The government reserves the right to hold a review of the scheme at any time.
RHI Scheme Requirements
Full details of requirements can be found on Ofgem’s website.
A full checklist of eligibility requirements is available from Ofgem. In summary your biomass heating system must:
- use eligible boilers
- be MCS certified
- provide space heating
You also need an Energy Performance Certificate (EPC) for your home and have to apply within 12 months of your boiler being commissioned.
We are approved installers under the Microgeneration Certification Scheme and have been trained to install biomass boilers to the highest standards.
All our installations are covered by our five year insurance backed workmanship guarantee.
Pellets 2 Heat are full members of the Renewable Energy Consumer Code, and guarantee to
- Explain our quotes and terms in plain english
- Allow you 14 days cooling off period after any contract is agreed
- Act with honesty and integrity at all times
- Ensure our workforce are courteous and respect your home or business premises
If you have any questions regarding our certifications please don’t hesitate to get in touch.
Part of our service to you is to ensure you can take full advantage of any financial assistance available by providing you with an eligible biomass heating system.
Request a quote
Take advantage of the government’s financial support schemes and contact us on 0330 22 33 868 to request a free no obligation quote for a biomass boiler for your home.