Logs

Changes affecting the Renewable Heating Incentive (RHI)

New biomass sustainability requirements

  • The UK government will introduce new sustainability criteria for installations using biomass fuels under the Renewable Heat Incentive on 5 October 2015.
  • From 5 October 2015 biomass fuel used by RHI participants must be sourced from a supplier on the Biomass Suppliers List – http://biomass-suppliers-list.service.gov.uk/ at the time the fuel was purchased. This is a list of suppliers of sustainable biomass fuel.
  • It is advisable to check whether your fuel supplier is registered on the Biomass Suppliers List before entering into any long term supply contract.
  • Not all fuels supplied by suppliers on the BSL are sustainable as a supplier may supply more than one type of fuel. You should  check with your supplier, or prospective supplier, which of their fuels are registered

What could I earn using RHI?

RHI cash payments are made quarterly over seven years. The amount you receive will depend on a number of factors – including the technology you install, the latest tariffs available for each technology and – in some cases – metering.

What technologies can I claim RHI support for?

  • Biomass (wood fuelled) boilers
  • 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

Air to air heat pumps, all log stoves, pellet stoves without back boilers and hybrid PVT are not supported by RHI.

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 certain high temperature heat pumps may also be eligible.

All systems must also be listed on the Domestic Renewable Heat Incentive Product Eligibility List – https://www.ofgem.gov.uk/publications-and-updates/domestic-renewable-heat-incentive-product-eligibility-list-pel

Who can apply for RHI?

  • Owner-occupiers, self-builders, private landlords and registered providers of Social Housing who have installed an eligible technology can apply for RHI support (provided they meet eligibility criteria).
  • Single domestic dwellings are covered.
  • RHI support is not available to new build properties (other than self-build projects).

You must apply within one year of the commissioning date of your system.

How do I apply for RHI?

You can apply for RHI via Ofgem’s website . Providing you have all the relevant information to hand and your application does not require a manual review, you should receive an immediate decision. To check if your application will need manual review, visit https://www.ofgem.gov.uk/environmental-programmes/domestic-renewable-heat-incentive

If you are unable to apply online then you can contact Ofgem via their Domestic RHI Applicant Support Centre on 0300 003 0744 Monday to Friday from 09:00 to 17:00.

To apply you will need

  • MCS installation certificate number for the heating system
  • Energy Performance Certificate (EPC) number
  • Green Deal advice report number (unless you are a self-builder or a social landlord)
  • Bank details

Tariffs

The table below summarises the latest tariffs available for each technology:

Air source heat pumpBiomassGround source heatpumpSolar thermal
Tariff (p/k Wh renewable heat) (Applications submitted between 1 Oct. 2015 and 31 Dec. 2015 incl.)7.426.4319.1019.51
  • These tariffs have been 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, on the basis of 20 years of heat produced. Fossil fuel costs used are those for off-gas households.
  • Ofgem will make payments quarterly for seven years. Normally the heat required to heat the property will be deemed (estimated) and payments will be based on this amount.
  • Biomass –  renewable heat generated by biomass will be based on an estimated heat demand from an EPC
  • Heat pumps –  renewable heat generated by heat pumps will be based on an estimate of the heat demand from an EPC combined with an estimate of the heat pump’s efficiency
  • 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 (MCS) installation.

Elements affecting payment

  • Once you are receiving domestic Domestic RHI payments, the rate you get will change annually in accordance with the Retail Price Index (RPI).
  • 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 (such as the Renewable Heat Premium Payment), then the amount received will be taken into account when calculating your domestic RHI payments.