The Renewable Heat Incentive (RHI) Scheme | Smart Renewable Heat

The Renewable Heat Incentive

The Renewable Heat Incentive (RHI) is a government financial incentive, introduced to promote the use of renewable heat. Switching to heating systems that use eligible energy sources can help the UK reduce its carbon emissions and meet its renewable energy targets. This includes Air Source Heat Pumps and Ground Source Heat Pumps.

Participants receive quarterly payments for the amount of clean, green renewable heat their system produces. The Domestic RHI scheme is open to single residential dwellings, and the Non-Domestic RHI scheme is open to multiple domestic dwellings served by a single heat pump, and also commercial installations.

Domestic RHI

To join the Domestic Renewable Heat Incentive, your property must be capable of getting a domestic Energy Performance Certificate (EPC). The EPC is the proof required that your property is assessed as a domestic ‘dwelling’. Without one, you won’t be able to apply.

The EPC provides information on the amount of energy needed for space heating and hot water heating. This figure, along with the current tariff rate and the heat pump system efficiency, is used to calculate how much you get paid.

The more efficient the system, the greater the proportion of the heat demand you will be paid for. Payments are made quarterly for a total of 7 years. Payments will be based on the tariff rate applicable at the time of application and will rise with inflation, in line with the Consumer Price Index.

Non-Domestic RHI

If your heat pump system is in commercial, public or industrial premises, you would apply to the Non-Domestic RHI scheme. This can include small and large businesses, hospitals, schools, and organisations with district heating schemes where one heating system serves multiple homes.

Eligible installations receive quarterly payments over 20 years based on the amount of heat generated; heat production is metered and you will be required to submit meter readings throughout the duration of the scheme.

Planning to build or renovate a property? Our free guides will help.

Smart Renewable Heat

We are the UK’s leading heat pump installer, specialising in new build and renovation projects, or large-scale residential and commercial developments. We also work with homeowners and business owners to help them switch from traditional to renewable heating technology. With over 3,000 projects behind us, Smart Renewable Heat will be your trusted heat pump partner.

Each property is unique, and may benefit from a Ground Source Heat Pump, Air Source Heat Pump, or even a Hybrid Heat Pump. Our experts will help you make the right choice, and deliver the installation on-time and on-budget. Our SMART Heat Pump Service will ensure that your heat pump system operates to full capacity all year round.

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