Finance & Incentives
Incentives are available for electricity-generating installations (Feed-in Tariffs) and for heat-generating installations (Renewable Heat Incentive).
The Renewable Heat Incentive (RHI) is a financial support scheme which will provide long-term financial incentives for installations of renewable technologies which generate heat. The RHI is designed to encourage the uptake of renewable heat.
Phase 1 – Non-domestic RHI Scheme
The scheme was launched for non-domestic installations in November 2011. To be eligible for this incentive, an MCS certified product must be fitted by an MCS Certified Contractor. You can search for products here, and search for MCS Contractors here.
You will need to apply to Ofgem for support under the Scheme. Ofgem have published guidance wich sets out all the eligibility criteria and how to apply. This is available on their website.
Phase 2 – Domestic RHI Scheme
The Domestic RHI (DRHI) was launched on 9th April 2014, and is available to eligible customers who have installed renewable heat technology and meet the RHI criteria from 15th July 2009.
Pre-application enquiries from customers can be directed to the Energy Saving Advice Service (in England & Wales) on 0300 123 1234 or Home Energy Scotland (in Scotland) 0808 808 2282.
Customers wishing to apply for the incentive apply must do so via the Ofgem website. This website contains a range of useful support materials including guidance for MCS Contractors. Ofgem also operate a customer helpline 0300 003 0744 (Mon to Fri 9am-5pm) or you can email: DomesticRHI@ofgem.gov.uk.
Please note that Ofgem has also published a list of eligible products for the DRHI Product Eligibility List (PEL) available here. As a minimum products must hold MCS certification, however additional criteria have been applied to determine eligibility for the domestic RHI. It is important to ensure that the MCS certified product that you use is also listed on the PEL if the installation is intended for application to the DRHI.
Applicable technologies must be less than or equal to 45kW in size for a single technology installation or 70kw for a multiple technology installation, and have MCS Certification. Please ensure that you consult the relevant Ofgem legislation in order to establish whether your system meets all eligibility criteria for the scheme.
Tariffs and Payments
The DRHI tariff will be paid on a quarterly basis for seven years and will be based on the estimated heat demand of the property in most cases. Ofgem and BEIS are offering an additional Meter & Monitoring Support package to customers who have a heat pump or biomass installation. Further information about this can be found here.
The latest Tariffs and payments for the DRHI can be found on the Ofgem website here
From time to time changes are made to the RHI schemes. These will be listed below.
The Department of Enterprise, Trade and Investment (DETI) has suspended the Northern Ireland RHI Scheme to new applicants from 29th February 2016.The Great Britain RHI scheme is unaffected.
For further information please click here.
On 24 March 2016 DECC made changes to the Domestic RHI Regulations. This means that some of the scheme rules have changed, including:
- A Green Deal Advice Report (GDAR) is no longer needed as part of the application process.
- If you apply on or after 1 April 2016 your future tariff will be adjusted in line with the Consumer Prices Index (CPI) on 1 April of each subsequent year.
- If you applied before 1 April 2016 your tariff will continue to be adjusted in line with the Retail Prices Index (RPI) on 1 April of each subsequent year.
- If you are a custom-builder, you no longer need to install meters as a result of occupying the property for less than 183 days in the 12 months before application.
From 26 March 2016 any heat pump product which does not meet the new MCS standard will be removed and no longer be listed as an eligible product on our Product Eligibility List (PEL).
Domestic RHI Reports
Ofgem publish an annual report providing an update on the domestic RHI. It presents the latest statistics on accreditations on the scheme, payments made and feedback from our customer survey.
To download this report please click here.
Information for consumers can be found by contacting the Energy Saving Trust or from Ofgem. Further guidance can also be found at the Department for Business, Energy & Industrial Strategy website.
To find out what payments can be made from installing a renewable heating system please click here to access the DRHI payment calculator.