In April 2014, the Government launched the Renewable Heat Incentive (RHI) for homeowners.
The scheme pays fixed quarterly tax-free tariffs to homeowners for seven years after the installation of renewable heating technologies.
People who live in homes off the gas grid have the most potential to save on fuel bills now and far into the future as well as decreasing their carbon emissions. But it is also beneficial to people who own period properties or rely on LPG or oil as their fuel source.
The RHI scheme covers single domestic dwellings and is open to homeowners and self-builders in England, Scotland and Wales.
To see if you can benefit, and to work out how much you could save, you first need to understand which renewables would work for you and whether you meet the Government criteria.
The tariff rate is multiplied by the estimated annual heat load figure taken from your EPC, which is divided by four to generate a quarterly figure.
Heat pumps need an extra calculation to analyse their efficiency. This is done using the heat pump’s Seasonal Performance Factor (SPF) which converts the estimated annual heat load into the estimated renewable heat load.
To be eligible, all heat pumps must have a minimum SPF of 2.5.
Heat pumps must also use a compressor (a component which raises the temperature of the liquid that the heat is transferred to within the technology) driven by electricity.
The domestic RHI will pay you the following tariffs per unit of heat generated for seven years (on a quarterly basis):
RHI tariffs pence/kWh from 01/01/218
Air-source heat pumps
10.18p/kWh Capped at 20,000kWh
Ground and water-source heat pumps
19.86p/kWh Capped at 30,000kWh