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2nd April, 2018

Increase in RHI Tariff – Great news for heat pumps!

Latest RHI Tariff – Great news for heat pumps!

The table below summarises the latest tariffs available for each technology:

 

Air source heat pump

Biomass

Ground source heat pump

Solar thermal

Tariff (p/k Wh renewable heat)

(Applications submitted between 01 Jan. 2018 and 31 Mar. 2018 incl.)

10.18 6.54 19.86 20.06

Tariff (p/k Wh renewable heat)

(Applications submitted between 01 Apr. 2018 and 30 Jun. 2018 incl.)

10.49 6.74 20.46 20.66

Table last updated April 2018

The table above is taken from information published on Ofgem’s website.

​These tariffs have been set by the UK Government at a level designed to compensate for the difference between costs of installing and operating renewable heating systems and fossil fuel systems, including non-financial costs such as disruption, on the basis of 20 years of heat produced. Fossil fuel costs used are those for off-gas households.

  • Ofgem will make payments quarterly for seven years. Normally the heat required to heat the property will be deemed (estimated) and payments will be based on this amount.
  • Biomass –  renewable heat generated by biomass will be based on an estimated heat demand from an EPC
  • Heat pumps –  renewable heat generated by heat pumps will be based on an estimate of the heat demand from an EPC combined with an estimate of the heat pump’s efficiency
  • Solar thermal systems – renewable heat generated by solar thermal systems will be based on the estimate of system performance completed as part of a Microgeneration Certification Scheme (MCS) installation.

Elements affecting payment

  • Once you are receiving domestic Domestic RHI payments, the rate you get will change annually. Prior to the Spring Regulatory amendments introduced on 24 March 2016 the rate changed in accordance with the Retail Price Index (RPI). Applications accredited on or after 1 April 2016 will be adjusted by the Consumer Prices Index (CPI) instead.
  • The RHI scheme uses a ‘degression’ system designed to manage the scheme budget available for the domestic RHI. From time to time, the tariff for a technology will be reduced (for new applicants only) if the total amount being claimed in total for that technology reaches a certain level. Anyone who is already claiming domestic RHI will not have their tariffs reduced through degression.
  • If you have already received a grant from Government or public funds (such as the Renewable Heat Premium Payment), then the amount received will be taken into account when calculating your domestic RHI payments.

Metering

Most domestic systems payments will be based on an estimated heat output (’deeming’). In some cases, meters are required to determine the technology’s heat output. Ofgem’s Do I need metering for the Domestic Renewable Heat Incentive (RHI)? and Essential guide to metering factsheets have further details.

The Metering and Monitoring Service Package is an optional feature you could choose to buy from your installer when installing a renewable heating system to provide peace of mind the installation is working as expected; enable the installer to continually improve performance where possible; and to diagnose common problems if they occur.

 

Find Us.

Black Isle Renewables Ltd,
Culbo Road, Culbokie,
Dingwall, Ross-shire IV7 8JU
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01349 877 029