Domestic RHI Update

Domestic RHI

Earlier this month the Department of Energy and Climate Change released its consultation on the domestic RHI scheme.  Whilst nothing has been confirmed the indications of how the scheme will operate and the level of funding for renewable heat technologies is encouraging.

It is likely that RHI payments will be paid over a 7 year period and are designed to cover the capital cost of the equipment and give a modest return.  The scheme is designed so that the extra capital cost of renewable heat technologies no longer proves a barrier to their uptake and puts the UK on the path to a low carbon future.

The payments will be paid on a deemed rate.  This is the expected amount of heat energy you will need to heat your home per annum.  Your MCS accredited renewable energy installer such as EnergyMyWay will calculate the heat load of your home according to MCS guidelines and this will give you a figure in kWh p.a. and this will be the expected energy required to heat you home.  Naturally there will be variables i.e. an exceptional mild or harsh winter, individual comfort levels do you like a warmer house than most people? How diligent are you at closing windows and doors to minimise drafts.  All these things will affect the amount of heat energy you use in your property.

Below is a table of tariff rates which were published in the Domestic RHI consultation document.

BiomassASHPGSHPSolar Thermal
Tariff (p/kWh)5.2 - 8.76.9 - 11.512.5 - 17.317.3

If the RHI for Air Source Heat Pumps were to be set at the lowest end of the range i.e. 6.9p / kWh and the annual heat load for your property was 13,000 kWh you would be paid in RHI payment 6.9 x 13,000 = £897 p.a. which over the proposed 7 years would give you a total payment of £6,279.

If you would like more information on the Domestic RHI call us on 0845 371 3181



James Eades

By: James Eades

Operations Director, James Eades is EnergyMyWay's in-house expert on renewable energy policy, microgeneration technologies and best practice in the renewable energy industry.