Renewable Heat Incentive

Renewable Heat Incentive (RHI)

What is the Renewable Heat Incentive?

RHI, or the Renewable Heat Incentive, is actually two schemes. Both are government environmental programmes that provide financial incentives to increase the uptake of renewable heat by households, businesses, the public sector and non-profit organisations.

The Domestic and Non-Domestic Renewable Heat Incentive schemes have separate tariffs, joining conditions, rules and application processes. Ofgem administers both schemes in England, Scotland and Wales.

Which RHI scheme do I need?

The Domestic RHI scheme is for single dwellings that are capable of having a Domestic Energy Performance Certificate. The Non-Domestic RHI scheme is essentially for all other installations.

Each application can only be to one of the schemes. To decide which to apply for, see the information below. We have also included the Ofgem factsheet 'The Renewable Heat Incentive – Domestic or Non-Domestic?' to help you decide.

The Domestic RHI Scheme

The Domestic Renewable Heat Incentive (Domestic RHI) scheme is open to anyone who can meet the joining requirements. It is for households both on and off the gas grid.

Domestic RHI encourages households to install and use renewable heat. Switching to heating systems that use eligible energy sources can help the UK reduce its carbon emissions and meet its renewable energy targets.

People who join the scheme and stick to its rules receive quarterly payments for seven years for the amount of clean, green renewable heat it’s estimated their system produces.

Since opening in April 2014, the scheme has already seen thousands of people successfully join and receive payments. You can see what some of these participants have to say about the process by reading Ofgem's case studies.

If the renewable heating system heats only a single property which is capable of getting a domestic Energy Performance Certificate (EPC), then you should apply for the Domestic RHI. The EPC is the proof that is needed to show that your property is assessed as a domestic dwelling. Without one, you can’t join the scheme.

Find out more about the Domestic RHI scheme - click here.

The Non-Domestic RHI Scheme

Businesses, public sector and non-profit organisations can apply if equipment was installed in England, Scotland or Wales on or after 15 July 2009 (or later in some cases). Your installation must meet certain requirements.

Eligible installations receive quarterly payments over 20 years based on the amount of heat generated. The scheme covers England, Scotland, and Wales.

There is a separate scheme for Northern Ireland. The Department of Enterprise, Trade and Investment suspended the Northern Ireland RHI Scheme to new applicants from 29 February 2016.

Generally, if the renewable heating system is in commercial, public or industrial premises, then you would apply to the Non-Domestic RHI. This can include small and large businesses, hospitals, schools, and organisations with district heating schemes where one heating system serves multiple homes.

Find out more about the Non-Domestic RHI scheme - click here.