The Renewable Heat Incentive, or RHI, is a scheme set up by the UK government to encourage homeowners in England, Scotland and Wales to install renewable heating technology and reduce their carbon emissions.
It was launched in April 2014 and updated in July 2015 to fine-tune the eligibility criteria for heat pumps and biomass systems.
If you install an eligible system and then keep to the rules of the scheme, the government will pay you renewable energy incentives as a cash sum each quarter. The amount will be based on the amount of clean, green renewable heat produced by your system.
The grant covers heat pumps (ground to water or air to water), solar thermal panels, and boilers powered by wood or biomass. Some cooker stoves or high temperature heat pumps might also qualify. We’ve included full (and rather technical) details in a table further on in this article.
The RHI doesn’t cover log stoves, air to air heat pumps, pellet stoves (unless they include an integrated boiler providing space heating) or hybrid photovoltaic (PV) solar panels.
The payments will change each year in line with the Retail Price Index, and will depend on a range of factors, including:
You can find out roughly what you might earn by using the RHI calculator on the website of the Department of Energy and Climate Change (DECC).
Here are the latest renewable energy incentives for each kind of heating, as shown on the Energy Saving Trust’s website:
|Air source heat pump||Biomass||Ground source heat pump||Solar thermal|
|Tariff (pence per kilowatt hour of renewable heat) Applications submitted between 1 July 2015 and 30 September 2015 inclusive||7.42p||7.14p||19.10p||19.51p|
|Tariff (pence per kilowatt hour of renewable heat) Applications submitted between 1 October 2015 and 31 December 2015 inclusive||7.42p||6.43p||19.10p||19.51p|
Tariff rates updated – 1 September 2015
You could qualify if:
No – the scheme applies to homes both off and on the gas grid. In fact, if you can’t get mains gas, yours is one of the homes with most potential for savings on your fuel bill and CO2 emissions.
You must apply within a year after you’ve installed and started using your heating system. That means you can apply for a system that’s already working, as long as it’s been going for less than a year.
To apply, just visit Ofgem’s website. They recommend you use a laptop rather than a tablet or smartphone.
If you can’t apply online, you can call Ofgem on 0300 003 0744; their lines are open 9am - 5pm Monday - Friday. You can also email them on DomesticRHI@ofgem.gov.uk.
You’ll need to have all this information ready before you start your application:
A Microgeneration Certification Scheme (MCS) certificate number for the heating system.
An Energy Performance Certificate (EPC) number.
Your bank details.
Details of whether or not your heating system might need to be metered – find out more.
Invoices or records showing what it cost to install your system (if it’s already up and running) or what you think it will cost to install (including labour) – it can just be a rough guestimate at this stage.
Ofgem might well be able to give you an immediate decision, unless there are aspects of your application that they need to review.
If your workplace is simply a home office in your house, or an annexe to it, then you should still be eligible for a Domestic RHI. However, if it’s in a separate self-contained building, it wouldn’t qualify.
There is a separate Renewable Heat Incentive for business or commercial properties, known as the Non-Domestic RHI. This is also suitable for hospitals, schools and district heating schemes.
Both RHIs are administered by Ofgem, but they have different tariffs, conditions, rules and application processes.
Not every heating system that seems to be renewable is suitable for the RHI scheme, so make sure you do your research before you invest your cash in a heater that isn’t on the approved list.
|YES||As long as:||No|
|Ground to water Air to water Water source Some high-temperature heat pumps||
||Air to air heat pumps|
Biomass stoves and boilers
|YES||As long as:||No|
|Biomass (wood-fuelled) boilers Biomass pellet stoves with integrated boilers that provide space heating||
||Log stoves Pellet stoves without back boilers|
|YES||As long as:||No|
|Solar thermal panels (flat plate or evacuated tube) that provide hot water for your home||
||Photovoltaic (PV) solar panels, including hybrid PV|
*Source and notes for graphs and table
OVO Energy Ltd, registered office 1 Rivergate Temple Quay Bristol, BS1 6ED, company no. 06890795 registered in England and Wales, VAT No. 100119879
Additional terms and conditions
Please see below for full terms and conditions on 33% renewable electricity, 3% interest rewards, exit fees and saving claims.
1Monthly cost - Representative monthly direct debit costs based on a non-economy-7, dual-fuel, medium user (3100 kWhs elec. and 12500 kWhs gas) paying in advance by direct debit, including online discount. All rates correct as of 23/08/16, but may go up or down.
2Weekly cost - Representative weekly costs based on a non-economy-7, dual-fuel, medium user (3100 kWhs elec. and 12500 kWhs gas). All rates correct as of 23/08/16, but may go up or down.
3Pay Monthly Savings are based on the average estimated annual costs for new PAYM OVO customers quoted through the OVO website (based on household and/or consumption information provided by those customers), compared to their current supplier and tariff. Comparisons taken between 01/01/2016 and 11/10/16. Incl VAT. Actual savings may vary according to your current supplier or tariff, individual tariff options, household information, consumption and location.
4Pay As You Go Savings are based on the average estimated annual costs for new PAYG OVO customers quoted through the OVO website (based on household and/or consumption information provided by those customers), compared to their current supplier and tariff. Comparisons taken between 01/01/2016 and 11/10/16. Incl VAT. Actual savings may vary according to your current supplier or tariff, individual tariff options, household information, consumption and location.
We include almost twice as much renewable electricity as the national average: At least 33% of electricity in all of our tariffs comes from renewable sources. The national average, according to Ofgem as at March 2014 was 16.7%. For more information please visit this page.
33% of your electricity comes from renewable sources: 33% renewable electricity as standard as of 1st April 2015. Renewable electricity is generated from wind, solar, geothermal, wave, tidal, hydro, biomass, landfill gas, sewage treatment plant gas and biogas.
3% interest: Calculated at 3% per year, paid monthly based on number of days in credit and the amount left in your account after you’ve paid your bill. OVO Interest Reward is capped at 12 times the amount of the current direct debit amount and is available to customers paying by advance direct debit. Terms apply: http://www.ovoenergy.com/terms/
95% of new customers save when switching to OVO: Based on all new customer signups between 01/02/2016 and 31/07/2016
94% of surveyed customers would recommend us: OVO conducted a survey of their customers in between 1st January 2016 and 15th April 2016. Out of 15,312 customers who responded, over 94% rated OVO 6+ when asked 'how likely would you be to recommend us to a friend and family, on a scale of 1 to 10.
Britain's top rated energy provider: Britain's top rated energy provider in the Which? 2015 satisfaction survey. Survey conducted in October 2015. Awarded in January 2016.
uSwitch's Energy Supplier of the Year: OVO energy was voted and awarded 'Energy Supplier of the year' and best for: Overall Customer Satisfaction, Most Likely to be Recommended, Value for Money, Best Deal for You, Customer Service, Billing Services, Energy Efficiency, Meter Services, Online Services, Green Services and Transfer Process. OVO Energy scored a 96% customer satisfaction score.