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Published: 10/04/2014

What Will The Domestic RHI Scheme Be Like For Consumers?

The Domestic RHI scheme was launched on April 9th 2014. Since 2011, RHI payments have only been available to non-domestic properties.  The new RHI scheme is a financial incentive from the Government to encourage homeowners and landlords to make the move to more environmentally-friendly heating alternatives.

Receive a payment every quarter for seven years

Those eligible for the scheme will receive a quarterly payment over seven years.  This payment will usually be based on the estimated heat demand of your property, and for heat pumps will also take into consideration their design efficiency.

Domestic RHI tariffs

Last year, the new Renewable Heat Incentive tariffs for domestic properties were announced:

 

The Department for Energy and Climate Change are also providing an additional £230 per year incentive for those customers who choose to have metering and monitoring support packages for heat pumps.

If you have previously received a publicly funded grant, such as RHPP, this will be deducted from your RHI payments to prevent a double subsidy.  The payment you receive will remain the same throughout the seven year duration of the scheme, with the exception of any changes based on the Retail Price Index (RPI), as long as you keep to the rules of the scheme.

Criteria for continued payments

There are a number of rules that you must abide by if you want to continue receiving your payments. These rules include advising Ofgem, who are administering the scheme, if you make any changes to the heating system or you sell the house with the heating system in, and you must ensure the heating system and metering equipment (if appropriate) is kept in good working order.  Every year, you will be asked to complete a declaration confirming that you have kept to the rule.  Ofgem will make random desktop and site audits to verify these declarations.  These rules are in place to protect the public purse.