The Domestic Renewable Heat Incentive

The Domestic renewable heat incentive promotes the use of renewable heating systems. The scheme pays participants to generate and use renewable energy to heat their buildings. The Renewable Heat Incentive launched on the 9^th April 2014, was set in place by government to help the UK reduce their greenhouse gas emissions and meet their targets for reducing the effects of climate change.

The Domestic Renewable heat incentive is targeted to cover a single dwelling, aimed at home owners, social & private landlords and self-builders. It is not open to new build properties except self-builds. Properties can be both on and off the gas grid and must be capable of getting a domestic Energy performance certificate (EPC). For people working in the renewable heating industry this should be a guideline and checklist for your customers.

Members of the scheme who abide by the policy rules will receive payments on a quarterly basis for seven years. Please see a tariff grid below on prices and eligible products:

•  Air-source heat pumps – 7.3p/kWh
• Ground and water-source heat pumps – 18.8p/kWh
• Biomass-only boilers and biomass pellet stoves with integrated boilers – 12.2p/kWh
• Solar thermal panels (flat plate and evacuated tube for hot water only) – 19.2p/kWh

Payments are based on an estimation of the property’s heat use known as ‘deeming’. Some participant however may be required to install metering and submit regular readings in order to receive payments. This would be a compulsory requirement for some.

If you’re a Micro-generation certification scheme accredited installer or working in the renewable heating industry this information is vital to your professional knowledge.

Now the domestic renewable heat incentive is targeted at a different market compared with the non-domestic renewable heat incentive. The application process is fairly straight forward; however unlike the non-domestic RHI you cannot complete the application form for the applicants.

You must familiarise yourself with the eligible products (see tariff above) and heating systems. It is important that you thoroughly understand the scheme requirements and the exemptions. For more information please visit the Ofgem website.

ADF Insurance Brokers arrange insurance for a wide variety renewable energy risks including biomass and solar. If you either install or invest in renewable energy assets and require an insurance quotation please do not hesitate to contact us. Or feel free to leave your comments and any feedback you may have on the following sites: Facebook, Twitter, Linkedin and Google+.