Domestic Renewable heat incentive

What Is The Domestic RHI?

The Domestic Renewable Heat Incentive ("Domestic RHI") is a Government financial support scheme for renewable heating systems including ground source heat pumps and air source heat pumps. The scheme was launched in April 2014 and is administered by Ofgem, the energy regulator. The purpose of the Domestic RHI is to support and reward those households who move away from traditional fossil fuels for heating their homes, which helps towards the Government's renewable energy and carbon reduction targets.

Owners of heat pumps will be paid quarterly over a 7 year period for all of the eligible renewable heat generated by the heat pump in the property. Eligible renewable heat includes the energy required for heating the home and providing domestic hot water.

Payments are usually based on a deemed amount of heat produced by the heat pump, and are index-linked, meaning payments should increase year on year.

How Is The Domestic RHI Worked Out?

Domestic RHI HEAT Pump TARIFFS

The Domestic RHI is a tariff based system, similar to the Feed-in Tariff for solar panels. The table below shows the current Domestic RHI tariffs for ground source heat pumps and air source heat pumps. These tariffs represent the amount you receive for each unit of renewable heat generated by your heat pump to heat your home.

Technology RHI Tariff [p/kWh]
Ground Source Heat Pump 20.46
Air Source Heat Pump 10.49

Table showing RHI Tariffs applicable from 01/04/2018 - 31/06/2018

 Domestic RHI Worked Example

Worked example 

For a typical 4-bedroom detached house

Total space heating and hot water requirement - 20,000kWh per annum

Ground source heat pump system capacity - 11kW

Ground Source Heat Pump Seasonal Coefficient of Performance - 3.5
This means that for each unit of electricity consumed, the heat pump produces 3.5 units of heat. The "renewable heat" is the difference between the total heat output and the electricity input. So for this example, for every 3.5 units of heat produced, 2.5 units are classed as "renewable heat".

Renewable Heat = 20,000kWh x (2.5 ÷ 3.5) = 20,000kWh x 71% = 14,286kWh @ 20.46p/kWh = £2,923 per annum

TOTAL ANNUAL DOMESTIC RHI PAYMENT = £2,923 PER ANNUM

Over 7 years the Total RHI Payment exceeds £20,000


 

wANT TO KNOW WHAT YOUR OWN rhi RETURN MIGHT BE?

Visit Ofgem's official calculator (external link)


Domestic vs Non-Domestic RHI

Domestic Renewable Heat Incentive

Generally speaking, the Domestic RHI is applied where a single property, which can receive a domestic Energy Performance Certificate (EPC), is being heated by a renewable heating system. The EPC acts as proof to show that the property is assessed as a domestic dwelling, as well as provided the deemed heat requirement for the property on which the payments are based.

NON-DOmestic renewable heat incentive 

If the renewable heating system is to be heating a commercial, public or industrial premises, or a heat pump system is delivering heat to multiple residential premises, then you would need to apply for the Non-Domestic RHI. This can include the likes of schools, hospitals, churches, large or small businesses, as well as multi-residential buildings.


Making A Claim

Domestic RHI Help Sheet.PNG

Domestic RHI

Help Sheet

First things first...

Before you make a start at claiming for the Domestic RHI, please ensure you have the following at hand:

  • Your Microgeneration Certification Scheme (MCS) certificate number
  • Your Energy Performance Certificate (EPC) number
  • Your bank details - make sure that the name and personal details you use for your application are the same as on your bank account
  • Your metering questions, if you need to be metered

It is also recommended to prepare the following:

  • If you need to be metered for payments please have your "Metering Questions" provided by your installer to hand
  • Invoices stating both the cost of the system and labour to install - this will have no effect on payments or eligibility

What next?

Once you have all of the above at hand, click here and select Apply Now.

Using the help sheet, fill in each block. If you do still require any further assistance, Contact Us and we will be happy to advise. 

After Your Application

Once you have made your application you will be able to log in to MyRHI which you will be able to keep track of your RHI payments, when you are likely to receive your payments and check your bank details to ensure the payments are being made to the right account. Then you can sit back, relax and watch the payments roll in for the next 7 years while experiencing the advantages of using a renewable heat source.


Move away from fossil fuels and get paid to heat your home


Non-Domestic Renewable heat incentive

What Is The Non-Domestic RHI?

The Non-Domestic Renewable Heat Incentive ("Non-Domestic RHI") is similar to the Domestic Renewable Heat Incentive however it is aimed at businesses, the public sector and non-profit organisations, as well as buildings where multiple residential premises are heated by a common heat pump system. The Non-Domestic RHI is a Government programme which provides financial incentives over a 20 year period for the use of renewable heating products, such as ground source heat pumps and air source heat pumps. 

Payments are based on the metered amount of heat produced by the heat pump, and are index-linked, meaning payments should increase year on year.

How Is The Non-Domestic RHI Worked Out?

Non-DOMESTIC RHI HEAT PUMP TARIFFS

The Non-Domestic RHI is a tariff based system, similar to the Feed-in Tariff for solar panels. The table below shows the current Non-Domestic RHI tariffs for ground source heat pumps and air source heat pumps. These tariffs represent the amount you receive for each unit of heat output generated by your heat pump.

Non-domestic RHI Payments table

Technology RHI Tariff [p/kWhth]
Ground Source Heat Pump Tier 1 - 9.36
Tier 2 - 2.79
Air Source Heat Pump 2.69

Tariffs that apply for installations with an accreditation date on or after 20 September 2017

Tier 1
The tier 1 tariff is applied to the ‘initial heat’. ‘Initial heat’ is the amount of heat, in kWh, that would be generated by the heat pump installation if running at capacity for 15% of the year (1,314 hours).

Tier 2
The tier 2 payment is paid on the rest of the output for the year.

Worked example

Total space heating and hot water requirement - 50,000kWh per annum

Ground source heat pump system capacity - 30kW

Tier 1 kWh = 30 x 1,314 = 39,420kWh @ 9.36p/kWh = £3,690 per annum

Tier 2 kWh = 50,000 - 39,420 = 10,580kWh @ 2.79p/kWh = £295 per annum

TOTAL ANNUAL NON-DOMESTIC RHI PAYMENT = £3,985

 
 Non-Domestic RHI Worked Example

Non-Domestic vs Domestic RHI

NON-DOMESTIC RENEWABLE HEAT INCENTIVE 

If the renewable heating system is to be heating a commercial, public or industrial premises, or a heat pump system is delivering heat to multiple residential premises, then you would need to apply for the Non-Domestic RHI. This can include the likes of schools, hospitals, churches, large or small businesses, as well as multi-residential buildings.

DOMESTIC RENEWABLE HEAT INCENTIVE

Generally speaking, the Domestic RHI is applied where a single property, which can receive a domestic Energy Performance Certificate (EPC), is being heated by a renewable heating system. The EPC acts as proof to show that the property is assessed as a domestic dwelling, as well as provided the deemed heat requirement for the property on which the payments are based.


Find Out More about the non-domestic RHI Today 


Building Regulations, SAP & SBEM

Heat Pumps and Building Regulations Part L

The Building Regulations set out requirements for specific aspects of building design and construction. The building regulations states that “Where a building is erected, it shall not exceed the target CO2 emission rate for the building…”.

Part L of the Building Regulations then goes on to state that provision for conservation of fuel and power shall be made by limiting heat gain and losses and providing building services which are efficient, have effective controls and are properly commissioned and that information is provided so that the building can be operated efficiently.

Heat Pumps and SAP

The Government's Standard Assessment Produce ("SAP") is the methodology used to calculate the emission rate from buildings. The Government has set targets that new buildings must achieve, and the minimum standard are stated within Part L. 

For any given property, a Target Emission Rate ("TER") is established. This is the emission rate for a notional dwelling of identical dimensions to that which is being built, based on the minimum requirements stated within Part L. The actual emission rate of the building called the Dwelling Emission Rate ("DER") must be lower than the TER. In order to achieve this, developers must specify building materials and technologies that reduce carbon dioxide emissions from the property.

The Effect of Heat Pumps in sap

One of the biggest contributors to the CO2 emissions for a property is the heating system installed in the property.

Heat Pumps currently deliver up to 4 units of heat output of every 1 unit of electrical input, meaning they are by far the most efficient way to utilise electrical energy to produce heat, and as more low and zero carbon technologies are used to generate our electricity, the carbon emissions from Heat Pumps will decrease even further as they play an increasingly crucial role in our nation’s low carbon future.

Heat Pumps & SAp Appendix Q

Not all heat pumps are created equal. SAP sets out benchmark efficiencies that can be used for ground source heat pumps and air source heat pumps. However, certain heat pump manufacturers' heat pumps are listed within the SAP Appendix Q Database.

Heat pumps listed within this database are allowed to use their specific performance figures, as opposed to the generic performance figures stipulated with the main body of the SAP calculation. This provides a further reduction in the CO2 emission rate for the building. All of the ground source heat pumps and air source heat pumps supplied by Alto Energy are listed with the SAP Appendix Q Database, ensuring that the CO2 emissions reduction achieved by our heat pumps is optimised.


Choose Heat Pumps FOR YOUR NEW BUILD PROJECT

By choosing heat pumps for your project, you make compliance with the Building Regulations that bit easier.


Heat Pumps and SBEM

As with residential premises, the Building Regulations also set out requirements for specific aspects of building design and construction for non-residential buildings. These requirements are set out within Part L2 of the Building Regulations.

Similarly to residential premises, the basic principle involves using standard data sets to calculate the annual energy use of a proposed building and comparing it with the energy use of a 'notional' building of a similar type, under similar circumstances. This is done by calculating the Target Emission Rate ("TER") and comparing this with the Building Emission Rate ("BER") for the proposed building. The BER must not be higher than the TER. In order to achieve this, developers must specify building materials and technologies that reduce carbon dioxide emissions from the building.

Compliance with the Building Regulations can be demonstrated by using the Simplified Building Energy Model (SBEM), a computer programme developed by the Building Research Establishment, BRE. Please note that SBEM is a 'simplified' compliance tool, rather than a design tool.

The Effect of Heat Pumps IN SBEM

SBEM calculates monthly energy use and carbon dioxide emissions, given a description of the building which is entered through its user interface. The results are based on:

  • Building type
  • Building geometry
  • Construction
  • Use
  • Heating, ventilation and air-conditioning (HVAC)
  • Lighting equipment

Depending on the overall use of the building, the selection of heating equipment is going to have a significant impact on the energy requirements and subsequent CO2 emissions from the building.

Heat Pumps currently deliver up to 4 units of heat output of every 1 unit of electrical input, meaning they are by far the most efficient way to utilise electrical energy to produce heat, and as more low and zero carbon technologies are used to generate our electricity, the carbon emissions from Heat Pumps will decrease even further as they play an increasingly crucial role in our nation’s low carbon future.


Choose Heat Pumps for your Commercial Development