Renewable heat incentive rates
The Renewable Heat Incentive (RHI) has been set up by the government to help the citizens of the UK reduce their carbon emissions. It is available for households both off and on the gas grid. Those without mains gas (i.e. LPG Bottled Gas or Oil) have the most potential to save on fuel bills and decrease carbon emissions by installing renewable energy technologies.
There are three eligible renewable heating system types. These are:
- Air source heat pumps
- Ground source heat pumps
- Solar thermal hot water systems
The Government has announced changes to the domestic RHI, designed to encourage wider installation of heat pumps and other renewable heating systems across the housing spectrum.
Following a public consultation during 2016, the changes take effect in Spring 2017. Those who apply after 14 December 2016 will be eligible for the current tariff rate and then for the increased tariff rate from the day it comes into force. This tariff increase will happen automatically.
- 33.4% increase in tariff for air source heat pumps
- New requirement for electrical on metering of heat pumps
- Cap on payments
- Restructured monitoring and metering service packages
- Air source heat pump tariff increased by 33.4% to 10.49p/kWh up from 7.51p/kWh
- Ground source heat pumps tariff increased by 1.1% to 19.55p/kWh up from 19.33p/kWh
- Biomass incased 37.6% to 6.44p/kWh up from 4.68p/kWh
- Solar thermal remains at 19.74p/kWh (unchanged)
NEW DIRECTIVE ON METERING
All new Domestic RHI applicants will be required to have electricity metering to monitor their heating system, giving the householder a better understanding of the system’s energy consumption. Payments will continue to be on the basis of the deemed heating requirements of the property, except for second homes and where a renewable heating system is installed alongside another heating system. In these situations, payments will continue to be on the basis of heat metering.
CAP ON PAYMENTS
To ensure that subsidy payments represent value for money, there will be limits to the annual level of heat use qualifying for support under the new tariffs. This has been set to a combined heating and hot water from the property EPC of 20,000 kwh
These ‘heat demand limits’ will be based on EPC and set at:
- 20,000kWh per annum for ASHPs
- 30,000kWh for GSHPs
- 25,500kWh for biomass
Payments will continue to be made only on the renewable proportion of the heat demand, in line with current rules.
REVISED MONITORING AND METERING SERVICE PACKAGES
To further understand and drive improvements in the market, monitoring and metering service packages (MMSP) have been restructured. 50% of the payment will now be made upfront, with the remaining 50% over a seven-year period. In addition, the reforms will also reduce the frequency with which metered data should be uploaded from weekly to monthly.
Subject to parliamentary approval, new regulations will be coming into effect in spring 2018. The Department for Business, Energy and Industrial Strategy (BEIS) is introducing an option to help householders and/or landlords overcome assignment of rights (AoR) issues. If you’ve already installed a renewable heating system, you have up to 12 months to apply to the scheme from its commissioning date. That’s the date your installer tests and signs off the system (details on your microgeneration certification scheme certificate).
Read our essential guide before applying and don’t forget to check our product eligibility list to see if your product meets the scheme rules.
Once you’re approved to join the domestic RHI, you have to comply with the rules for the seven years that you’re receiving payments. You’ll have to complete annual declarations open key term pop-up every year to confirm that you’re following the scheme rules and your ongoing obligations. Contact us for more details.
Get money for generating your own electricity
If your feed-in tariff application is successful, you’ll get a set amount for each unit (kilowatt hour or kWh) of electricity you generate – a ‘generation tariff’. The rates vary depending on:
- the size of your system
- what technology you install
- when your system was installed
- how energy efficient your home is
You must have a certified renewable energy installer.
As well as the generation tariff, you can also sell any extra units you don’t use back to your electricity supplier. This is called an ‘export tariff’. You’ll get 4.85p per unit of electricity. You can sell back half of the units of electricity you generate. You’ll need an export meter if your installation is above 30kW. You’ll also save money on your electricity bills for the energy you do use.
restructured. 50% of the payment will now be made upfront, with the remaining 50% over a seven-year period. In addition, the reforms will also reduce the frequency with which metered data should be uploaded from weekly to monthly.