Renewable Heat Incentive
Get paid for being ‘clean and green’!
With the Domestic Renewable Heat Incentive (dRHI), you can receive a grant for generating your own domestic heating from renewable sources. So you can do your bit for the planet, enjoy a cosy warm home… and get paid for it!
The dRHI applies to any technologies which generate hot water or hot air. These include:
- Solar thermal (hot water) panels
- Ground source heat pumps
- Air source heat pumps
- Biomass boilers; or biomass pellet stoves with integrated boilers
There are certain registered makes and models of renewable energy systems which are approved for the dRHI. The system must also be certified under the MSC (Microgeneration Certification Scheme), and be installed by an MCS approved installer.
What about solar PV?
The dRHI doesn’t apply to solar PV systems, as these generate electricity, not heat. Solar PV systems benefit from a different scheme: the Feed-In Tariff.
Which homes qualify?
The dRHI applies to single domestic dwellings, and is available for homeowners, private landlords, social landlords and self-builders. It only applies to existing properties and new self-build homes.
Will there need to be an assessment?
In order to apply for the dRHI your home will need to undergo a Green Deal assessment, if it hasn’t had one already (we can help with that!). This includes producing an Energy Performance Certificate (EPC) which is needed as proof that your home is a domestic dwelling.
Will any upgrades be needed to the property?
This EPC may highlight the need for loft or cavity insulation, and if it does then you will normally need to get that done before you can apply for the dRHI (unless your home is exempt - eg, a listed building). It makes sense to insulate your property well, so you don’t waste any of the benefit of your new renewable heat installation!
How does the finance work?
The grant does not provide money up front to pay for the installation. But once your system is installed and registered, you will be paid for each unit of energy your system generates. The rate varies, depending on the technology. Until 30th September 2015, they are as follows:
- Air source heat pumps 7.42p/kWh
- Ground and water-source heat pumps 19.10p/kWh
- Biomass 7.14p/kWh
- Solar thermal panels 19.51p/kWh
Payments are made quarterly, and you join the scheme for seven years. The payments are usually based on the estimated annual heat usage for your home, which is shown on your EPC.
How to register
There is plenty more useful information on the Ofgem website, including details of how to register online for the scheme:
We can help!
If you’re thinking about a renewable heat installation, then give us a call and we’ll be happy to talk you through the process. Importantly, we can help you make the right choices so you’ll qualify for the dRHI scheme.