Renewable Heat Incentive.
The Renewable Heat Incentive (RHI) is a UK Government scheme set up to encourage uptake of renewable heat technologies amongst domestic and commercial properties and communities through monetary incentives implemented through companies such as Heat Pumps Scotland. These incentives were created to help contribute towards the government’s plans of 12% of all heating coming from renewable energy in the UK by 2020. The RHI was created to target properties that are off the gas grid and typically use high usage energy fuels in an attempt to lower carbon emissions through Britain.
There are two types of Renewable Heat Incentive, which offer separate rules, tariffs and application processes.
Two schemes: Domestic and Non-Domestic.
The Renewable Heat Incentive has two schemes – Domestic and Non-Domestic. They have separate tariffs, joining conditions, rules and application processes. We administer both.
Each application can only be to one of the schemes. To decide which, consider the below information, alongside our factsheet ‘The Renewable Heat Incentive – Domestic or Non-Domestic?’ in the publications and updates section at the bottom of this page.
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The domestic RHI was launched in 2014 and offers a financial incentive over seven years to the household or property owner where a renewable heating system is installed. These properties are effectively rewarded for producing, clean renewable energy.
A domestic property is classed as domestic if it heats only a single property which can earn a domestic Energy Performance Certificate (EPC). You will need this EPC as evidence when applying for the RHI. The EPC gives the governing bodies of the RHI information about the property’s energy use and recommendations on how the property can reduce their energy consumption.
When a ground or heat source air pump is in a commercial, public or industrial place the non-domestic RHI must be applied for.
Premises that would apply for the non-domestic RHI include businesses, both large and small, schools and hospitals. Community heating schemes are also classed as non-domestic, where one heating systems supplies heat to multiple properties.
Complexities to the Scheme.
Very rarely your situation will not fit standard guidelines. When installing a ground or air source heat pump and you’re planning to heat more than one building it may be more difficult to decipher what tariff you should apply to, or if you’re eligible at all.In this case, your application will be researched individually; these guidelines may help you decide what scheme to apply to.
- Premises with a home office and can procure a domestic EPC will be eligible for the Domestic RHI.
- Homes with annexes which are covered by one domestic EPC will be eligible for the Domestic RHI.
- Premises with one main house and a self-contained outbuilding which own their own separate EPCs, though both heated by one heat pump would not be eligible for the Domestic RHI.