The Renewable Heat Incentive (RHI) scheme is designed to encourage the adoption of renewable energy technology across the UK. It’s intended to help the Government meet its 2020 target of 12 per cent of heating coming from renewable sources.

The first phase, launched in November 2011, was aimed at ‘non-domestic’ installations across both the private and public sectors.  On the 9th April a second phase aimed at ‘domestic’ households was launched.

The scheme provides financial incentives for the take up renewable heating systems, such as air and ground source heat pumps, biomass systems, and solar thermal technologies.  Tariffs vary depending on the technology installed, but allow householders to get paid for generating their own heat.

Who will benefit from the Domestic RHI?

RHI is primarily aimed at the 3 million households not connected to the gas grid, many of which rely on expensive heating oil. It is likely to particularly benefit those with biomass boilers.

The scheme is also likely to spark interest from householders that don’t currently benefit from renewable heating technology, and lead to an increase in sales enquiries for retailers.  Being able to offer interest free and/or low interest bearing loans to customers provides them with repayment choices. And for many, the option of affordable monthly finance will make renewable technologies even more attractive.

The RHI scheme is open to householders, private landlords and providers of social housing who have installed eligible technology since 15th July 2009.  Applicants that meet the eligibility criteria will receive quarterly payments for seven years – although recipients of any grants will have the grant’s value deducted.

The scheme only applies to England, Scotland and Wales. You can read the eligibility criteria by clicking this link to Ofgem’s website.

To download Ofgem’s RHI Factsheet click here.