The Renewable Heat Incentive
The Renewable Heat Incentive (RHI) is a UK Government scheme set up to encourage uptake of renewable heat technologies among householders, communities and businesses through the provision of financial incentives.
 
The UK Government expects the RHI to make a significant contribution towards their 2020 ambition of having 12 per cent of heating coming from renewable sources.
 
The Renewable Heat Incentive is the first of its kind in the world.There are two phases to the introduction of the RHI:
 
Phase 1: the RHI for non-domestic installations in the industrial, business and public sectors.
 
Phase 2: the domestic element of the RHI, introduced in spring 2014
 
Domestic RHI​
 
The domestic RHI provides financial incentives to owners of eligible, renewable heating systems on their homes. It supports air source heat pumps (ASHP), biomass systems, ground source heat pumps (GSHP) and solar thermal technologies with tariffs varying depending on the technology.
The domestic RHI is open to owner occupiers, private landlords, Registered Providers of Social Housing and self-builders who have installed an eligible technology since 15thJuly 2009, provided they meet the scheme criteria.

Successful applicants will receive quarterly payments for seven years. Any public grants previously received, including the Renewable Heat Premium Payment (RHPP), will be deducted to avoid a double subsidy.

To get an idea of the potential payments you could receive if you have installed an eligible renewable heat technology, try out the Government’s Domestic Renewable Heat Incentive payment calculator.

The scheme covers England, Wales and Scotland only.

Ofgem is responsible for administering the scheme which opened in Spring 2014. Find out about eligibility criteria and the application process by visiting  Ofgem.

If your home is in Scotland, please click  here for more information and support.
The UK Government expects the RHI to make a significant contribution towards their 2020 ambition of having 12 per cent of heating coming from renewable sources.
The UK Government's Department for Energy and Climate Change (DECC) makes the key decisions on FITs in terms of government policy.
The Feed-In Tariff (FITs)
About the Feed-In Tariff
 
Feed-In Tariffs were introduced on 1 April 2010 and replaced UK government grants as the main financial incentive to encourage uptake of renewable electricity-generating technologies. Most domestic technologies qualify for the scheme, including:
 
  • solar electricity (PV) (roof mounted or stand alone)
  • wind turbines (building mounted or free standing)
  • hydroelectricity
  • anaerobic digesters
  • micro combined heat and power (CHP)
 
The UK Government's Department for Energy and Climate Change (DECC) makes the key decisions on FITs in terms of government policy. The energy regulator Ofgem administers the scheme.
 
Your energy supplier will make the FITs payments to you. The large energy suppliers are required by law to provide them; smaller suppliers are not, but many have opted to offer them anyway. Go to the Ofgem website for a list of FITs-licensed suppliers.
 
For you to qualify for FITs, the installer and the products you use must both be certified under the Microgeneration Certification Scheme (MCS), except hydro and anaerobic digestion which have to go through the ROO-FIT process.
 
The tariffs you receive depend on both the eligibility date and, for solar PV, your property’s Energy Performance Certificate (EPC) rating.
 
How FITs Work
 
Electricity is created by solar panels. Your electricity supplier pays you for each unit of electricity you generate. You can use the electricity you generate meaning you don’t have to import from the grid. You export electricity back to the grid when you don’t use it. You are paid an export tariff. You import electricity from the grid when you need additional power.]
If you are eligible to receive FITs you will benefit in three ways:
 
Generation tariff: your energy supplier will pay you a set rate for each unit (or kWh) of electricity you generate. Once your system has been registered, the tariff levels are guaranteed for the period of the tariff (up to 20 years) and are index-linked.
 
Export tariff: you will get a further 4.77p/kWh from your energy supplier for each unit you export back to the electricity grid, so you can sell any electricity you generate but don't use yourself. This rate is the same for all technologies. At some stage smart meters will be installed to measure what you export, but until then it is estimated as being 50% of the electricity you generate (only systems above 30kWp need to have an export meter fitted, and a domestic system is unlikely to be that big).
Energy bill savings: you will be making savings on your electricity bills because generating electricity to power your appliances means you don’t have to buy as much electricity from your energy supplier.The amount you save will vary depending how much of the electricity you use on site.  For a summary of the FIT rates please click here for up to date tables provided by Ofgem.

Registering for FITs

Once your chosen installer has installed your generating technology, take these steps to register for FITs:
 
  1. Ask your installer to register you on the central MCS database. The installer will then send you a certificate confirming MCS compliance.
  2. Tell your chosen FIT supplier that you wish to register for the FIT and send them:
  • a completed application form
  • the MCS certificate
  • for solar PV, the Energy Performance Certificate that shows your home has an energy efficiency rating band D or better.
 
Your FIT supplier will cross-reference your installation with the MCS database and undertake other eligibility checks, confirm your eligibility and the date you are eligible for payments from, add you to the Ofgem Central FIT Register, which records all installations in the FIT scheme and agree with you if and when you will need to provide meter readings.