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Extra Income for UK Off-Grid Homes with the Domestic RHI

15% of the UK’s homes are off the main gas grid and now homeowners can earn £6,000 every year for 7 years by switching from oil to renewable energy.

The Government has announced generous financial incentives for households to switch to renewable heating (subject to State Aid clearance and Parliamentary approval) and thanks to these new cash payments, homeowners will now be able to reduce heating bills by up to the 40% and cover the costs of renewable energy heating systems.

Those households likely to benefit the most in financial terms are off-grid properties running on oil or LPG with the space to install a biomass boiler or heat pump.

Heating Oil Usage in the UKKey facts about off-grid homes:

  • There are around 4 million UK households not connected to the mains gas grid.
  • 51% of off-grid homes in the UK are in rural locations, with heating oil being the most popular fuel source.
  • Proportionally more off-grid homes are single occupancy (GB) and/or house a person over the age of 60 (UK)
  • UK average heating costs for heating oil and LGP have risen in the 4 years prior to 2011, with LPG being the most consistently expensive and heating oil being the most volatile.

(Source: Off-Grid Energy, OFT market study, October 2011, OFT1380)

What are the costs and returns like?

Most properties in the UK will qualify for RHI payments – including domestic and commercial, landlords and self-builders. Basic energy efficiency measures need to be in place before accessing RHI payments, which might include effective loft insulation, to ensure that heat generated from renewable energy is being used most efficiently. Here are two examples:

ASHP-domestic-RHI-table biomass-domestic-RHI-table

To begin claiming RHI payments, homeowners are advised to contact an MCS-accredited renewable energy installer to discuss their options, have their property surveyed, and understand prices and returns.

Download the RHI in Brief

Download EnergyMyWay’s Domestic RHI in Brief

By: Louisa Stockley