The Domestic RHI was introduced by the Government to encourage homeowners, self builders and property renovators to install renewable heating systems, helping to reduce the UK’s carbon emissions.
The Domestic Renewable Heat Incentive (RHI) provides guaranteed payments for seven years to offset the cost of ground source heat pumps.
What is the Domestic RHI?
The Domestic RHI’s purpose is to compensate for the additional upfront cost of installing a ground source heat pump compared to poor efficiency fossil fuel systems, providing a long term rate of return and fast payback.
In addition to this end users will also benefit from the significant fuel cost savings following the installation of a ground source heat pump; safe, reliable, sustainable and renewable, providing a generous total benefit.
Is the Domestic RHI right for me?
In this example a single domestic property is linked to a single ground array feeding one ground source heat pump.
This scenario is eligible for the Domestic Renewable Heat Incentive. More Domestic RHI options
In this example a single domestic property with outbuildings are linked to a single ground array feeding one ground source heat pump.
This scenario is eligible for the Domestic Renewable Heat Incentive.
- Guaranteed payments made every 3 months for 7 years based on “deemed” energy consumption – based on figures from your Energy Performance Certificate.
- Government backed scheme, administered by Ofgem. Visit Ofgem’s website for details: www.ofgem.gov.uk/environmental-programmes/domestic-renewable-heat-incentive
- 20.46p/kWh domestic RHI tariff for ground source heat pumps.
- All self-build and domestic renovation projects are eligible, as well as domestic heating replacement schemes.
- Payable on ‘renewable heat’ produced by the ground source heat pump (GSHP) – GSHP’s produce 3 – 4kWh of renewable heat for every 1kWh of electricity consumed.
- Lower flow temperature heating systems, i.e. underfloor heating, optimise heat pump performance & Domestic RHI payments.
- Index linked tariff increases every year with inflation.
- Installations must be compliant with the Microgeneration Certification Scheme (MCS) to be eligible.
The fuel cost savings of a ground source heat pump combined with Domestic RHI payments mean the savings quickly add up.
5 bed detached house built 2002-2009 in the South East replacing oil:
- Domestic RHI & fuel cost savings over 7 years = £24,415
3 bed new build semi-detached house in the Midlands replacing LPG:
- Domestic RHI & fuel cost savings over 7 years = £11,415
2 bed detached bungalow built 1982-2002 in the North East replacing electric storage:
Go to RHI calculator
- Domestic RHI & fuel cost savings over 7 years = £11,752
Calculating Domestic RHI payments
Domestic RHI Tariff
The Domestic RHI is paid at a set rate per unit of renewable heat produced (kilowatt hour or kWh) by the Kensa ground source heat pump, for seven years. The RHI payments are made to the owner of the heating system.
The Domestic RHI supports ground source heat pumps (GSHP), air source heat pumps (ASHP), biomass systems and solar thermal technologies. The Domestic RHI tariff rates vary depending on the technology installed.
All tariffs are payable on the amount of renewable heat generated:
The renewable heat will be based on the heat demand taken from an EPC combined with an estimate of the heat pump’s efficiency to determine the renewable proportion of the heat; the more efficient the ground source heat pump, the more renewable heat generated.
To help improve performance of renewable heating systems there is an extra incentive for applicants who install metering and monitoring service packages.
Domestic RHI tariffs will change annually in line with the Retail Price Index (RPI). The Department for Business, Energy & Industrial Strategy (BEIS) intend to introduce a system of degression to control the costs of the scheme. This is where tariffs are reduced over time for new applications to the scheme. Those who have already secured their tariff will not have their tariff reduced.
We realised that we could get the whole thing paid for with the Domestic RHI, including the installation work."
Keith Clarke, Homeowner
Wondering ‘how much RHI will I get’? Use our free RHI calculator to find out what Domestic RHI payments you could receive from the RHI scheme, and the anticipated ground source heat pump cost for a Kensa heat pump system.
How much does a ground source heat pump cost? To help you understand how much it costs to install a ground source heat pump, and what RHI payments you could receive, Kensa has put together the following examples. You can also use this resource to identify the best ground source heat pump system architecture for your…
RHI Domestic (FS) V7 Fact Sheet Version 7
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Our Commercial Director Chris Davis gives top tips on how self-builders can make the most of the RHI.