Following the success of the Non-domestic RHI, the government launched the Domestic RHI in April 2014. The Renewable Heat Incentive was the world’s first financial incentive of its kind, determined to revolutionise the way that heat is generated and used in buildings. Although the conditions of the Domestic and Non-Domestic schemes vary, both were established as part of the UK’s commitment to reduce Carbon Emissions by 35% by 2020 and 80% by 2050.
The Domestic RHI scheme pays participants over seven years (per kWh) who install and use a renewable energy system to heat their home. It’s expected that heat pump technology, in particular, will play a significant role in the UK hitting their renewable energy targets.
The Domestic RHI is suitable for homes on and off the gas grid in England, Wales and Scotland. Eligibility includes homeowners, private landlords and social landlords.
There can often be a grey area for large country estate owners who reside in their premise, yet also have means of income from the estate, to determine if the Domestic or Non-domestic RHI is the most suitable. The Renewable Design Company’s experts can help advise on this matter; please contact us today for a chat.
If a Domestic RHI application is successful the applicant will receive a payment every quarter for seven years. Under the Domestic RHI scheme, Ofgem pay for all eligible renewable heating based on their calculation::
The tariffs increase annually based on the CPI rate for December of the previous year. You can find more details on the scheme at here.
All details of the Domestic RHI can be found on Ofgem’s website. This includes a checklist of key information required before starting your application, and what you can expect from a qualified heat pump installer such as The Renewable Design Company.
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