Domestic RHI – Tariffs

Biomass update: The Domestic RHI tariff has just been “degressed” by 20% and the Commercial RHI tariff has just been “degressed” by 25% – 30/05/15

The domestic renewable heat incentive (RHI) will be paid to eligible applicants on a quarterly basis for 7 years.

Current 7 year tariffs  (RHI launch 9th April 2014):

  • Ground source heat pumps 19.1p/kWh
  • Air source heat pumps 7.42p/kWh

The amount of energy required by the property is to be estimated from a Green Deal EPC (Energy Performance Certificate), you must have a Green Deal Assessment if you are wishing to benefit from the domestic RHI, the only exception is self builders. Find out more here »

The formula is based on the total heating and hot water energy requirement and the Seasonal Performance Factor (SPF efficiency). The SPF relates to how much heat is produced for each kWhr of electricity the heat pump consumes.

The following tables, provide a guide to the annual domestic renewable heat incentive tariff values. Click on each table to enlarge.

Ground source heat pump domestic tariff payment guide

Ground source heat pump domestic tariff payment guide

Air source heat pump domestic tariff payment guide

Air source heat pump domestic tariff payment guide.

Tariff degression:

The RHI is funded directly from Government spending, therefore the RHI will have a budget management procedure to ensure it is sustainable. If application volumes reach a ‘trigger’ level for the particular renewable energy technology, the tariff will digress by 10% or by 20% if a ‘super trigger’ is reached for ground source heat pumps, otherwise tariffs will remain the same. DECC will review application volumes every quarter to identify whether a trigger has been reached, one month’s notice will be given for any tariff reduction.

Legacy applications will be protected from any reductions over the first year of the scheme, to ensure a fair phasing process for applications.

Once a ‘trigger’ is reached, applicants already part of the scheme will continue to receive their existing tariff. Likewise those who have applied before the end of the notice period will not be affected by the tariff reduction.

Source Energy will publish details of any changes in tariff levels promptly after the initial DECC notices. Subscribe to our emails to ensure you do not miss out on any of these announcements.

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