The Renewable Heat Initiative (RHI) is a government scheme aimed at incentivising the adoption of small-scale renewable heat generation in the UK.
What is the Renewable Heat Initiative?
The Renewable Heat Initiative (RHI) aims to promote the adoption of renewable and low-carbon heat generating technologies in the UK. It was introduced April 2014 after the successful launch of the Feed-in Tariff (FIT) scheme which paid owners of microgeneration systems for electricity generation.
The RHI guarantees payments for seven years (domestic) or 20 years (non-domestic) for the heat produced by the microgeneration system where the scheme rules are adhered to. The payments are made quarterly and are based on either the estimated heat output from the system or metering readings.
There are two types of RHI:
- Domestic – this is open to domestic UK households only
- Non-domestic – this is for businesses, the public sector, and non-profit organisations
Ofgem administer both of the RHI schemes but they have different tariffs, conditions, rules, application processes.
Which Technologies Are Eligible For the RHI?
The following technologies are eligible for the RHI:
- Biomass only boilers and biomass pellet stoves
- Air source heat pumps
- Ground source heat pumps
- Solar thermal – flat plate and evacuated tube
In addition, the following are eligible under the non-domestic RHI:
- Combined heat and power from solid biomass, waste, geothermal, and biogas
- Geothermal
- Biomethane
- Biogas
What Criteria Do You Have to Meet?
Not all renewable and low-carbon heat technologies are eligible for RHI so you should check the eligibility of the system before selecting it. Not all uses of the system are also eligible such as cooking food or heating swimming pools, so it is worth checking that the use is eligible too.
The criteria can vary depending on which technology you install but you will need to ensure that you have a Microgeneration Certification Scheme (MCS) certificate for your system to eligible. This requires you to use a certified MCS installer and install MCS certified equipment. If the system is not covered by the MCS due to its size being over 45kWth then you will need to have the equivalent EN45011 or ISO17065.
Domestic RHI
Domestic properties will also need to have the following:
- An up to date Energy Performance Certificate (EPC) that reflects the current state of the property and it must be no more than 24 months old. If the EPC recommends that you need cavity wall or loft insulation you must install these before commissioning the microgeneration system and get a new EPC. If it is not possible to install these it must be due to one of the insulation exemption reasons and evidence will be required in order for you to be eligible for the RHI
- You will also need to supply an Emissions Certificate if you are installing a biomass boiler
- Subject to the new changes coming into force heat pumps will be required to be metered to monitor their performance. There are additional payments included to help fund this new requirement and meter readings will need to be sent
For domestic properties, there is also a requirement to ensure that the system installed, your home and the way you use the system adhere to the scheme rules throughout the seven payment period. There will be checks made on the system through remote checks and possibly site visits. Examples of this include:
- Using approved sustainable fuel for biomass boilers and you will be expected to retain receipts as evidence
- Changes to the heating system
- Change of home ownership.
If your microgeneration system will be utilised by both domestic and commercial properties, or it will be used by multiple properties, you will need to apply for the non-domestic RHI.
You must also apply for the RHI within 12 months of the installation being completed. The date will be taken from the MCS certificate.
Non-domestic RHI
Non-domestic RHI recipients will also need to provide:
- Annual declaration confirming the system is still eligible based on the criteria
- Submit regular meter readings
- Send quarterly fuel reports for biomass and biogas, or biomethane producers
- Maintain service and maintenance records that can be supplied when requested
Recent Changes to the RHI
There has been a two-stage set of changes to the RHI in September 2017 and February 2018 which included:
- Heat pump performance metering through new Metering and Monitoring Service Package (MMSP) and enforcement powers which will see financial support available for installing the package which checks on the performance of the heating system. This will be paid as a quarterly payment or as a lump sum with a smaller quarterly payment depending on when you register your system and it will be paid for the lifetime of the RHI
- Assignment of rights which will come into effect in June 2018 will allow households to assign their rights to an investor in order help them get finance to install a renewable heating system
- Revised degression thresholds as part of the RHI’s budget management mechanism which was extended to 2020/21. This enables the Department of Business, Energy, and Industrial Strategy to keep the scheme within budget by controlling the tariffs on a regular degression.
There is a useful and more detailed guide on the changes to the RHI available on the Ofgem website.
Microgeneration Certification Scheme
The Microgeneration Certification Scheme (MCS) is a quality assurance that certifies microgeneration technologies that generate electricity and heat from renewable sources and low-carbon technologies. They accredit both the system technologies and the competency of the installers.
It covers electricity generating technologies up to 50kW and heat generating technologies up to 45kW.
The MCS is recognised in the UK only and is supported by the Department for Business, Energy, and Industrial Strategy. The MCS website enables homeowners or businesses to search for installers and products that are MCS accredited.
This enables consumers to select the most appropriate system and be aware of any additional requirements to make the system MCS accredited.
How Do I Apply for the RHI?
Domestic RHI
You can apply for the domestic RHI on the Ofgem website but you will need to have the following:
- MCS certification number
- EPC certification number
- Your bank account details for the payments to be made into
- Metering questions if you need to be metered
- The cost of the system and installation which can be estimated (this does not affect the payment or eligibility)
There is a guide to support applicants through the application process.
Non-domestic RHI
You can apply for the non-domestic RHI online on Ofgem’s website, but you will need the following:
- Receipts/invoices for the purchase and installation
- Commissioning certificate/report
- Photo of the nameplate of the installation
- Photo of the meter/s, both calculator/s and flow meter/s
- Class 2 Measuring Instruments Directive certificate
- Schematic diagram of installation
- Letter of authorisation
- Evidence the plant is not heating one domestic property
- Plus other system specific requirements
There is a guide to support applicants through the application process.
RHI Rates
The Department of Business, Energy and Industrial Strategy (BEIS) sets the RHI tariff rates every quarter which may apply a degression to the rates. The tariff rates are fixed once you are registered to receive the RHI except for an annual adjustment to reflect the Retail Prices Index (RPI). The RHI rates are guaranteed for 7 years (domestic) or 20 years (non-domestic) as long as you comply with the scheme rules.
Domestic RHI
Below shows the rates for 1st April 2018. Each quarter the government makes a decision about whether to apply a degression to these rates and this is announced at least a month prior to the degression taking place.
- Biomass – 6.54p/kWh
- Air source heat pump – 10.18p/kWh
- Ground source heat pump – 19.86p/kWh
- Solar thermal – 20.06p/kWh
NOTE: These figures are for illustration purposes and you should check Ofgem’s website for the most current figures.
Non-domestic RHI
| Technology | Size | Capacity | Tariff p/kWh |
| Biomass | Small | Under 200kWth tier 1 | 2.96 |
| Under 200kWth tier 2 | 2.08 | ||
| Medium | 200kWth-1Mwth tier 1 | 2.96 | |
| 200kWth-1Mwth tier 2 | 2.08 | ||
| Large | Over 1 MWth tier 1 | 2.96 | |
| Over 1 MWth tier 2 | 2.08 | ||
| Combined Heat and Power | All capacities | 4.29 | |
| Water/ground source heat pump | All capacities tier 1
|
9.09 | |
| All capacities tier 2 | 2.71 | ||
| Air source heat pump | All capacities | 2.61 | |
| Deep geothermal | All capacities | 5.22 | |
| All solar collectors | Under 200 kWth | 10.44 | |
| Biomethane injection | First 40,000 MWh of eligible biomethane tier 1 | 3.20 | |
| Next 40,000 MWh of eligible biomethane tier 2 | 1.89 | ||
| Remaining MWh of eligible biomethane tier 3 | 1.45 | ||
| Biogas combustion | Small | Under 200 kWth | 2.88 |
| Medium | 200-600 kWth | 2.26 | |
| Over 600 kWth | 0.86 |
NOTE: These figures are for illustration purposes and you should check Ofgem’s website for the most current figures.
How Is the RHI Paid?
The RHI is paid quarterly into your designated bank account by Ofgem.
How is the RHI Regulated?
The Department for Business, Energy, and Industrial Strategy (BEIS) set the tariff rates and policies that underpin the RHI. Ofgem administers the scheme on behalf of the government including running the scheme, approving applications, and reporting.
Complaints about the RHI
If you have a complaint in regard to the decision about the RHI you can first ask Ofgem to conduct a review through the Application Support Centre:
- Domestic RHI – call 0300 003 0744 or email domesticrhi@ofgem.gov.uk
- Non-domestic RHI – call 0300 003 2289 or email enquiry@ofgem.gov.uk
If you want to lodge a complaint about how Ofgem have handled you then you can complete the formal complaint form.
If you have a complaint with the installer you should first try to resolve it with them. If you cannot resolve the complaint satisfactorily then you should contact the certification body that the installer belongs to, you can find these details on the MCS website. Or you can escalate the complaint to the Renewable Energy Consumer Code (RECC) where you can complete a complaint registration form online.
The History of the RHI
The RHI was introduced in April 2014 after the success of the FIT scheme. Since it’s launched there have been several reviews and the scheme has undergone several changes some of which are still coming into effect.
A review was undertaken by the government and they published a consultant on the proposed changes in March 2016 and the response was published in December 2016. The changes were phased with the first stage in September 2017 and the second stage in February 2018.
Other Related Schemes
As mentioned there is also a scheme for renewable and low carbon technologies that generate electricity called the Feed-in Tariff (FIT). The FIT offers fixed rates for electricity generation and export which pays the tariffs for to 20 years.
Who to Contact
General – Domestic RHI
Ofgem point people initial to the Energy Saving Trust in England and Wales or the Home Energy Scotland for initial advice on the Domestic RHI.
- Energy Saving Trust – 0300 123 1234 or visit http://www.energysavingtrust.org.uk/
- Home Energy Scotland – 0808 808 2282 or visit http://www.greenerscotland.org/home-energy-scotland
RHI applications
Domestic – call 0300 003 0744 (Monday-Thursday 9am-5pm, Friday 9am-4.30pm) or email domesticrhi@ofgem.gov.uk
Non-domestic – call 0300 003 2289 (Monday-Thursday 9am-5pm, Friday 9am-4.30pm) or email rhi.enquiry@ofgem.gov.uk