Renewable Heat Incentive

The Renewable Heat Incentive (RHI) is a UK Government scheme set up to encourage uptake of renewable heat technologies amongst householders, communities and businesses through the provision of financial incentives. The UK Government expects the RHI to make a significant contribution towards their 2020 ambition of having 12 per cent of heating coming from renewable sources. The Renewable Heat Incentive is the first of its kind in the world.

There are two phases to the introduction of the RHI:

Phase 1 introduction of the Renewable Heat Premium Payments (RHPP) scheme to households and also the introduction of the RHI for non-domestic installations in the industrial, business and public sectors. Both of these have been introduced.
Phase 2, the domestic element of the RHI, is expected to be introduced in the summer of 2013 following a UK Government consultation in September 2012.

Renewable Heat Incentive

The UK Government has not yet published its proposals for how the Renewable Heat Incentive will work in the domestic sector, so there is no guarantee at this stage that anyone who is eligible for a Renewable Heat Premium Payment grant will also be eligible for the Renewable Heat Incentive. A UK Government consultation on this is expected in September 2012.

Although air source heat pumps will be eligible for the Renewable Premium Payment, a decision on whether or not they'll be included in the payments will be based on consumer feedback on the performance of the technologies. This should be clarified in the government’s RHI proposals.