Householders are paid hundreds of pounds a year for heat generated by solar thermal panels, biomass boilers and heat pumps.

Air Source Heat Pumps receive 10.18p for every Kw required to heat a home

The new Renewable Heat Incentive (RHI) for householders is designed to drive forward uptake of renewable heat technologies in homes across Great Britain to cut carbon, help meet renewables targets and save money on bills. The scheme is a world first, and has been up and running for the non - domestic sector since November 2011.

The announcement follows extensive consultation on how a financial incentive would work best for householders and takes into account lessons learned from the Renewable Heat Premium Payment grant scheme (RHPP) and the RHI non domestic scheme.

Eligible applicants

The scheme will be made available to homeowners, private and social landlords, third party owners of heating systems and people who build their own homes. Anyone who has installed a renewable heat technology since 15 July 2009 and meets the scheme eligibility criteria will be able to join the scheme.

Eligible technologies

RHI domestic will support air to water heat pumps; biomass only boilers and biomass pellet stoves with back boilers; ground and water source heat pumps; flat plate and evacuated tube solar thermal panels.

Tariff payments

Payments will be made on a quarterly basis for seven years. The tariffs have been set at a level that reflects the expected cost of renewable heat generation over 20 years. In most cases, payments will be made based on estimated heat demand of the property. DECC will offer an extra set payment of £230 per year where consumers take out metering and monitoring support packages for heat pumps and £200 for biomass boilers.

Scheme requirements

Applicants will need to complete a Green Deal Assessment before submitting their application and must ensure they have met minimum loft (250mm) and cavity wall insulation requirements, where appropriate. All installations and installers must be MCS certified (or certified by an equivalent scheme). MCS certified installers are currently required to be members of the Renewable Energy Consumer Code, which is backed by the Trading Standards Institute.


The Renewable Heat Incentive (RHI) is a Government-backed financial incentive to help with the cost of installing renewable heat technology. The scheme is currently at Phase One, which is designed for commercial business and not-for-profit organisations.

The renewable heat technologies covered in Phase One of the scheme includes:

  • heat pumps - ground source, water source
  • biomass
  • geothermal
  • solar thermal collectors
  • biomethane and biogas

How does it work? 

Applications must meet eligibility criteria and when approved, payments are made every quarter over a 20 year period. The payment amount depends on:

  • the type of technology you install
  • how much energy the installation can produce
  • how much energy is used

How do I apply?

Applications must be made via the Ofgem website.

For more information about the scheme, please call us on 01747 825222.

Useful links





We're here to help...

go button

Looking for a green energy solution that won't cost the earth?
For expert advice, surveys & quotations contact us now

Map showing Dorset Energy Solutions installations

Take a look at our showroom

Our renewable energy showroom is now open with our products and installations on display.
Click here for more