Renewable Heat Incentive (domestic)
Renewable Heat Incentive (domestic)

The following Environment guidance note provides comprehensive and up to date legal information covering:

  • Renewable Heat Incentive (domestic)
  • What is the Renewable Heat Incentive (RHI)?
  • Eligibility
  • Payments, tariffs and assignment of payment
  • Application
  • Ongoing obligations
  • Ofgem
  • Further monitoring
  • Latest developments
  • Links with other schemes

What is the Renewable Heat Incentive (RHI)?

The RHI is a government scheme in Great Britain, that provides financial incentives to increase the uptake of renewable heat, in a sector currently heavily dominated by fossil fuels. The idea is that by providing financial incentives, some of the barriers to adoption, such as high up front costs and operational expenditure, will be removed.

The RHI scheme has been split into two phases:

  1. phase 1, which was introduced in November 2011 for non-domestic installations in the industrial, business and public sectors

  2. phase 2, which deals with the domestic RHI (preceded by the Renewable Heat Premium Payment (RHHP)) was rolled out in April 2014 and will be open until 2021

The domestic RHI is targeted at, though not limited to, off-gas grid households (such as those heating their homes using oil, LPG and electricity), as these are the households currently paying more to heat their homes and are emitting the most CO2. The RHI provides a subsidy payable to the owner of the heating system, per kWh of renewable heat produced, payable for seven years.

The RHI comes from powers in section 100 of the Energy Act 2008 (EnA 2008). The Domestic Renewable Heat Incentive Scheme Regulations 2014 (RHI 2014), SI 2014/928 as amended, are the main implementing regulations that contain the details of