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The Domestic RHI Explained

The Renewable Heat Incentive pays customers for the renewable heat their air source heat pump, ground source heat pump, biomass boiler or solar thermal system produces. The scheme aims to bridge the gap between renewable and non-renewable solutions. However, it’s often more lucrative than this.

How does the Domestic RHI work?

The Domestic RHI pays homeowners installing eligible air and ground source heat pumps, biomass boilers and solar thermal arrays over a period of 7 years. The type and efficiency of the system installed and the demand and efficiency of the property in which it’s installed determines payment.

The scheme functions as follows:

– a system is designed and specified to fit the needs of an individual property
– a full financial breakdown and analysis are provided
– an installation is undertaken, meeting the requirements of the RHI scheme
– the system is commissioned and registered with MCS
– using the certification provided, an online submission is made to Ofgem
– an online account is created displaying payment schedule
– payments are made quarterly over the next 7 years

Once a system has been registered for RHI payments, the customer is locked into deemed payments for the lifetime of their tariff. The exact tariff rate varies depending on the type of system installed and the date the installation is registered.

The latest Renewable Heat Incentive tariffs can be seen on Ofgem’s dedicated web page.

Who can access the Domestic RHI?

The Domestic RHI is open to all homeowners, providing they meet various criteria:

– Installed technologies must be MCS-approved
– Systems must be installed by an MCS-approved contractor
– Properties require a Domestic EPC that’s dated in the last 24 months
– A minimum of 250mm of loft insulation must be evident in the property
– The renewable system only provides heat to a single property
– An application is made within a year of the commissioning date
– Installed technologies must be serviced annually

How to apply to the Domestic RHI

In comparison to the Commercial scheme, applying to the Domestic RHI is a straightforward process.

Following the installation of an eligible renewable system, commissioning documents are provided. These documents are used to complete and online application into the scheme. After all details have been submitted, the registration process begins. The application takes approximately 30 minutes and acceptance is usually instant.

This blog has been provided by GreenGenUk.