Renewable Heat Incentive
What is the Renewable Heat Incentive?
The Renewable Heat Incentive (RHI) is a Government incentive that aims to encourage households to make their homes more efficient and convert to renewable energy sources for their space heating and hot water. It is part of the UK’s commitment to lowering greenhouse gas emissions.
If you’re eligible for RHI, you will receive a set payment, or tariff, over a period of seven years, which could cover the cost of having a renewable heating system installed.
Who is eligible for RHI?
There are Renewable Heat Incentive schemes for both domestic and commercial properties. We are talking about domestic RHI on this page, which is for heating systems for homes. Anyone can apply, including owner-occupiers, private and registered social landlords and self-builders, however there are various eligibility criteria.
One of the criteria is that the installation must be certified under the Microgeneration Certification Scheme (MCS); all heat pumps we install meet the necessary requirements. The Reina Group are approved MCS installers of ground source heat pumps and air source heat pumps, both of which are eligible for the RHI.
Another of the eligibility criteria is to have a Green Deal Assessment carried out on your home. This is because renewable heating systems, such as heat pumps, work most efficiently in well-insulated properties. If your property doesn’t meet the minimum requirements for loft and cavity wall insulation, your Green Deal Advice Report will recommend these improvements, which must be carried out before you apply for RHI. See below for more information on the Green Deal.
The Renewable Heat Incentive is not just for new installations. As long as you meet the criteria, you can receive RHI payments for a heat pump installed after 15th July 2009.
How much is the RHI tariff?
If you’re eligible for RHI, you’ll receive a quarterly payment over seven years. The tariff you will receive will be based on the estimated heat demand of your property. This information is taken from your Energy Performance Certificate (EPC). The payment you receive also factors in how efficient your heat pump is.
For air source heat pumps, you’ll receive 7.42p per kWh, and for ground source heat pumps, the tariff is 19.1p per kWh. The domestic RHI payments will not change throughout the duration of the seven years and will continue each year as long as you declare that you have kept to the rules of the scheme.
For more information on the domestic RHI payments, take a look at our flow chart.
What is the Green Deal?
The Government recognises that not every homeowner will be able to afford to make improvements to their home to make it more energy efficient. This is why they have created the Green Deal that allows you to pay for these home improvements over a long period of time through your electricity bill.
Making your home more energy efficient is expected to reduce your heating costs. The idea is that because of your lower heating bills, once the repayments are added to your electricity bill you shouldn’t see an overall increase in your bills.
How does Green Deal work?
The first step towards a Green Deal is to arrange for a Green Deal Assessor to come to your home to conduct a survey. They will talk to you about your energy uses and make recommendations for any improvements that could be made to your home to make it more energy efficient. The assessor will also give you an estimate of the costs. The Reina team can arrange for a Green Deal Assessor to visit you, so contact us today to make an appointment.
If you’re interested, Green Deal Providers will give you all the information you need to decide if a Green Deal Plan would suit you. They’ll also give you a quotation for the improvement works to be completed. If you decide to go ahead, your Green Deal Plan acts as a contract between you and the provider and will set out what work is to be done and the repayments.
Should you move house before the end of your Green Deal Plan the new occupier will benefit from the improvements so the repayments will be passed onto them.
If you’re on a low income or income-related benefits, or live in an older property, you may be eligible to additional financial assistance. Your Green Deal Assessor will be able to give you more information.
The Reina Group design, install and maintain heat pumps in Kent. For more information on the heat pump systems, how they work and how they can benefit you, take a look at our comprehensive guide to heat pumps.
