Renewable Heat Incentive

  • 7 year grants can be worth £1,000+ / year 
  • Air and Ground Source Heat Pumps
  • Solar Thermal Installations

The Domestic Renewable Heat Incentive is a government scheme that offers grants to encourage the take-up of renewable heating systems. The scheme went live on April 9th, 2014 and replaced the Renewable Heat Premium Payment which closed on March 31st, 2014.

You can apply to join the scheme if you install an eligible renewable heating system in a qualifying domestic property that you own or occupy albeit that the scheme is retrofit orientated and an installation in a new build property will normally only qualify if it is a ‘self build’.

Eligible systems include Ground Source Heat Pumps, Air-to-Water Heat Pumps and Solar Thermal Panels. However, specific technical requirements also apply as do further restrictions on how the technologies may be used. All installations must be MCS certified or equivalent.

To apply to the scheme you must have obtained an Energy Performance Certificate (EPC) for your property in the 24 months prior to your application date. If the certificate recommended loft and/or cavity wall insulation this normally will also need to be installed for you to qualify for the scheme.

Successful applicants who stick to the scheme’s rules receive a grant in the form of a series of payments based on the renewable heat deemed to be produced by their installation and a tariff/kWh dependent on the technology installed. Payments will be received quarterly for a 7 year period from the date of grant. The tariff / kWh will be fixed at the outset albeit it will be revised each year in line with inflation.

The Energy Savings Trust estimates that these payments could be worth in excess of £1,000 per year in the case of an Air-to-Water Heat Pump being installed in an average detached 4 bedroom home and in excess of £2,500 in the case of a Ground Source Heat Pump. Find out more about these figures.

Technology Indicative current tariff / kWh
Air-to-Water Heat Pump 7.51p / kWh deemed renewable heat
Ground Source Heat Pump 19.33p / kWh deemed renewable heat
Solar Thermal Panel 19.51p / kWh deemed renewable heat

Learn more about the Domestic Renewable Heat Incentive

[Last updated: January 2017]