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Half of UK's carbon emissions come from the energy used to produce heat - more than from generating electricity from fossil-fuels














Renewable Heat Incentive (RHI)

Under the RHI UK government has introduced a subsidy for domestic renewable heating installations in April 2014, to assist the transition to renewable heating

Currently around half of the UK’s carbon emissions come from the energy used to produce heat - more than from generating electricity. The Renewable Heat Incentive (RHI) is set to reduce emissions by 44 million tonnes of carbon to 2020, equivalent to the annual carbon emitted by 20 typical new gas power stations


What is renewable heating ?

A renewable energy heating installation is one that is not powered by a fossil-fuel ie. coal, oil or gas

A renewable power source is provided by heat pumps and by burning biomass (eg. woodchip and woodpellets)


Elegibility: If you currently rely on oil, liquid gas, solid fuel or electricity then you can apply for the subsidy for air to water source heat pumps, ground - or water- source heat pumps, and biomass boilers

Homes on the gas-grid are not eligible for the RHI


Case study:

A set of holiday cottages in East Yorkshire has  become one of the first places in the UK to get a payment under the RHI, where a ground source heat pump will provide heat and hot water to the five holiday lets at Broadgate Farm Cottages in Beverley. Owner of Broadgate Farm Cottages, Elaine Robinson said:

“We don’t have mains gas and the price of oil and LPG is very expensive so when we decided to develop the holiday cottages a ground source heat pump was the most economically attractive in the long term, especially with the Renewable Heat Incentive"
The Broadgate Farm Cottages has installed a 4.3kW ground source heat pump which has been accredited under the Microgeneration Certification Scheme (MCS) with an efficiency above that required by the RHI. It supplies space heating and hot water. The heat output is measured by an appropriate heat meter.  It has been accredited under the ‘small commercial heat pumps’ tariff of 4.5p / Kilowatt-hour (kWh) and will receive quarterly payments for a twenty year period


The former RHI Premium Payment Scheme is now replaced by the RHI itself..

..RHI payments (the RHI Premium Payment) were made for non-domestic installations ie. business/commerce until March 31 2014 because of a delay in the RHI scheduled launch until Spring 2014

The RHPP Phase 2 offered payments were as in the table, depending on which technology you were applying for


The voucher values for each of the technologies were:

Technology Voucher Value
Solar Thermal Hot Water £600
Air to Water Source Heat Pump £1300
Ground Source or Water Source Heat Pump £2300
Biomass boiler £2000


The Renewable Heat Premium Payment scheme - Phase 2 ran from 1st May 2012 to 31st March 2013


Which kinds of installation are RHI-eligible ?

1.Heat Pumps are eligible for RHI

Install renewable energy heating by replacing an existing oil boiler with a Ground Source Heat Pump or an Air Source Heat Pump and the installation is eligible for  the Renewable Heat Incentive. Providing your Heat Pump installation took place after June 15th 2009 and you meet the eligibility criteria, you will be able to receive an annual grant for up to 20 years

What are Heat Pumps?

Heat Pumps use similar technology to your refrigerator except in reverse. They take low level heat from the ground or air and concentrate it into much higher temperatures to provide all the hot water and heat your home needs

Heat Pumps save money too

As well as receiving annual payments via the RHI, installing Heat Pumps mean you could reduce your heating bills by over 60% when compared to oil-burning heating systems. You also won’t need to worry about unreliable fuel deliveries, particularly in bad weather and can instead enjoy the benefits of a property heated by renewable energy all year round.

How much do Heat Pumps cost?

As you're already considering changing your oil boiler in most cases it won't cost a lot more. However, every home is different



2.Biomass boilers are eligible for RHI













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