Renewable Heat Incentive – Payments

How do the RHI payments work?

Full details of the how the payments work can be found on the Ofgem Website:

https://www.ofgem.gov.uk/environmental-programmes/domestic-rhi/contacts-guidance-and-resources/tariffs-and-payments-domestic-rhi/current-future-tariffs

notes:

  • Homes on the RHI domestic scheme will receive a quarterly tariff payment for seven years, for every kilowatt hour (kWh) of renewable heat they produce.
  • All paid quarterly for seven years.
  •  Any public grants previously received, including the Renewable Heat Premium Payment (RHPP), will be deducted to avoid people receiving a double subsidy.
  • Energy regulator Ofgem is responsible for dealing with applications and payments.
  • Tariffs will change annually in line with the Retail Price Index (RPI).

How much these rates represent in real terms will vary between householders and heating technologies. In order to know how much you could potentially earn, you will need to know how much heat your system will generate in a year, in kWh:

  • for heat pumps the renewable heat generated will be based on an estimate of the heat demand from an EPC combined with an estimate of the heat pump’s efficiency

To help improve the performance of renewable heating systems, there will be an extra incentive for applicants who install metering and monitoring service packages, of £230 per year for heat pumps.

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