If you are still interested in the Renewable Heat Incentive (RHI) scheme, you’ll need to register your interest sooner rather than later. Applications must be submitted soon, as the Domestic RHI is due to close to new applicants on 31 March 2022. This means you will need to have your new energy source installed and commissioned by this date. Once your renewable technology has been commissioned, paymenhts will be made to you for 7 years. Read on to find out more about the RHI scheme, what it covers, eligibility criteria, signing up before the deadline and new incentive schemes to be introduced for renewable energy in 2022.
The RHI (renewable heating incentive) is a scheme that was introduced by the Government in 2011, as a replacement to the Low Carbon Building Programme. The commercial project started in 2011, and it was introduced into domestic homes by 2014.
This Government scheme was created to incentivize the investment into renewable forms of heating and in return, homes would get paid for the renewable heat they produced. This would usually be a quarterly payment for 7 years, and the amount would be different per household, as it would be calculated with the amount of renewable heat generated, combined with the tariff rates at the time. As soon as the scheme became available, thousands of households in the UK signed up, showing how popular and important the scheme has become.
With regards to what you can be paid, the rates used to calculate the payment amount are determined by the Departments for Business, Energy and Industrial Strategy (BEIS) and are in line with the Retail Prices Index (RPI) or the Consumer Prices Index (CPI) and payments are issued from Ofgem. The payments also depend on the size of your home (number of rooms) and the type of house you have.
To be a part of the incentive, not only must you follow the rules of the scheme, but you must also ensure you use qualifying renewable heating technologies. These include:
If you are thinking of getting renewable heating technology installed, make sure they are covered under the scheme. Speak to an expert at Cahill to find out more. The payments from the RHI incentive may be able to cover the initial costs, including the installation, and potentially long term costs too, including the maintenance.
If you already have one of these renewable technologies installed in your home, you may be eligible to apply to the RHI scheme. It is vital that you check you are not already signed up for the scheme before applying. Again, give us a call to discuss!
Although the deadline to apply for the RHI scheme is March 2022, it will not completely disappear. Instead, the RHI scheme will be replaced by the Clean Heat Grant (CHG), also known as the Boiler Upgrade Scheme, in April 2020.
The purpose of the scheme is to support the UK in reaching its net-zero carbon emissions goal by 2050. This scheme has been created as a much simpler way to get households to make a renewable switch, as long as the Government meets its target of installing 600,000 heat pumps each year, by 2028.
Households play an important role in the environment, currently causing approximately 40% of the UK’s emissions, with their 67.7 million tonnes of annual carbon emissions. It is therefore important to get as many households as possible onto renewable energy sources.
This is great news for homes that are gas-fuelled, as the scheme offers to reduce £5,000 off the price of a heat pump, which can often cost up to £10,000 so that homes all around the UK can take a step towards eco-friendly heating systems. The current boilers are deemed polluting, and it is the hope of the Government that this subsidy will incentivise more homes, as its aim is to lower the barrier of entry to the installation of greener heating networks. The new CHG scheme will be administered by Ofgem.
Early proposals from the Government suggest that you will be able to purchase air, water or ground source heat pumps as part of the new grant. There may also be additional renewable technology that you can install on this scheme, including a biomass boiler when they are able to use heat pumps and hydrogen-ready boilers.
Although any home that meets the criteria and has a gas boiler is able to apply for the incentive, with the current funding and budget for the new CHG scheme, it may be restricted at first. The current criteria are outlined as follows:
You can read more about the new boiler replacement scheme here.
The RHI scheme was made for households residing in England, Scotland and Wales, so if you meet this simple criterion, along with installing a renewable heat technology source at your property and hold an EPC, then you are still eligible to apply. It’s not just homeowners residing in a property that can apply, landlords and self-builders are also eligible to apply to the scheme. If you have a commercial property, you may still be able to apply under the Non-domestic scheme. Both have different joining criteria, tariffs and applications.
You can still apply up until the deadline in March 2022. You must visit Ofgem to make an application.
The RHI scheme is a great incentive to get involved in, as you can get paid to switch over your energy source, to a renewable solution. This scheme and its successor (the CHG) are great ways to make a positive change to help the environment, as well as support the UK as it aims to meet its renewable energy targets in the coming years. Everyone needs to play their part, and no part is too big or small. Visit Ofgem to check if you are eligible to apply, and start earning money today. You just need to ensure you make your application as soon as possible, as the deadline for applicants is fast approaching, in March 2022.