The Domestic RHI pays a quarterly income for 7 years for installations of ground source heat pumps in self-build and renovation projects.
What is the Domestic RHI?
The Domestic Renewable Heat Incentive (RHI) provides guaranteed payments for seven years to offset the cost of ground source heat pump installations by self builders, homeowners and social landlords.
Its purpose is to compensate for the cost of installing a ground source heat pump, 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 brought with the installation of a safe, reliable, sustainable and renewable technology, providing a generous total benefit.
The Domestic Renewable Heat Incentive (RHI) is a UK Government financial support scheme for renewable heat, targeted at, but not limited to, off gas grid households.
Key RHI Facts
- 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
- 19.55p/kWh tariff for GSHP.
- All self-build and domestic renovation projects are eligible, as well as domestic heating replacement schemes.
- Payable on ‘renewable heat’ produced by the 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 & RHI payments.
- Index linked tariff increases every year with inflation.
- Installations must be compliant with the Microgeneration Certification Scheme (MCS) to be eligible.
Calculate your earnings through the Domestic RHI
Find out how much money you can make and save when you install a Kensa ground source heat pump.
Using our simple-to-use tool you can also find out the size and price of the ground source heat pump recommended for your property, and how much ground area would be required for slinky ground collectors.Calculate my RHI income
See the savings add up
The fuel cost savings of a ground source heat pump combined with the generous income through the Renewable Heat Incentive (RHI) mean the savings quickly add up for all homeowners. See these examples:
5 bed detached house built 2002-2009 in the South East replacing oil with a 3 star system:
- Benefit over 7 years: £22,327
- Payback = 5 years
3 bed newbuild semi-detached house in the Midlands replacing LPG with a 3 star system:
- Benefit over 7 years = £12,325
- Payback = 6 years
2 bed detached bungalow built 1982-2002 in the North East replacing electric storage with a 4 star system:
- Benefit over 7 years: £14,915
- Payback = 5 years
How the calculations are made
The financial support will be paid at a set rate per unit of renewable heat produced (kilowatt hour or kWh), for seven years, to the owner of the heating system.
The scheme will support ground source heat pumps (GSHP), air source heat pumps (ASHP), biomass systems and solar thermal technologies. The support rates will vary depending on the technology installed. All tariffs are payable on the amount of renewable heat generated:
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.
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 will be an extra incentive for applicants who install metering and monitoring service packages. This is approximately £805 upfront, followed by six annual payments of £134.Read more
We realised that we could get the whole thing paid for with the Renewable Heat Incentive, including the installation."
Keith Clarke, Homeowner