Government Backed Financial Incentives to Install Renewable Energy Heating Systems

Renewable Heat Incentive Scotland

Renewable Heat Incentive Scotland
Renewable Heat Incentive Scotland - Air Source Heat Pumps
Air Source Heat Pump
Renewable Heat Incentive Scotland - Biomass Boilers
Biomass Boiler
Renewable Heat Incentive Scotland - Ground Source Heat Pumps
Ground Source Heat Pump
Renewable Heat Incentive Scotland - Solar Thermal Water Heating Systems
Solar Thermal Water Heating

What is the Renewable Heat Incentive Scotland?

Renewable Heat Incentive Scotland is a Government scheme which offers financial rewards to encourage home owners and landlords to switch to renewable energy heating systems instead of ones which use fossil fuel.

If you participate in the Renewable Heat Incentive Scotland scheme and install a renewable heating system such as an air source heat pump, biomass boiler, ground source heat pump or solar thermal water heating system, Renewable Heat Incentive Scotland tariff payments will be paid to you quarterly for 7 years.

Renewable Heat Incentive payments are generally based on the ‘deemed heat demand’ for your home which can be found on your Energy Performance Certificate (EPC).

In addition to receiving Renewable Heat Incentive tariff payments, you will reduce your energy bills and cut carbon emissions from your home.

Why was the Renewable Heat Incentive Scotland Scheme Introduced?

The reasoning behind Renewable Heat Incentive Scotland is that the Government wants to increase the number of homes using renewable energy heating systems such as air source heat pumps and biomass boilers.

This is part of the Government’s overall plan to reduce carbon emissions from homes and businesses in order to minimise the effects of climate change.

Renewable Heat Incentive Scotland is considered so important by the Government that when it was introduced, the Department of Energy and Climate Change described it as ‘the first step in transforming the way we heat our homes’.

In 2019 the Government Committee on Climate Change released a report entitled ‘Net Zero The UK’s contribution to stopping global warming’. This initiative set a target of net zero carbon emissions from the UK by 2050. You can download a copy of the report HERE.

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Which heating systems receive Renewable Heat Incentive Scotland Tariffs?

Renewable Heat Incentive Scotland Tariff Payments apply to:

Renewable Heat Incentive Scotland  tariffs are paid every three months for seven years. Renewable Heat Incentive Scotland is available to existing homeowners and landlords and those who self-build new homes.

Whilst the Renewable Heat Incentive Scotland scheme is available to all households, if you don’t have mains gas you will have more to gain in reducing both your fuel bills and the carbon emissions from your home. This is because of the higher cost and carbon emissions (compared to mains gas) from the use of LPG, heating oil, coal or electricity.

All renewable energy heating systems which meet Renewable Heat Incentive Scotland scheme rules must provide space heating or space heating and hot water (except solar thermal which must provide hot water only) to be eligible. Where a renewable energy technology system provides space heating, it must do so through a ‘wet’ central heating system which heats radiators.

Renewable Heat Incentive Scotland is available to:

  • owner-occupiers
  • private landlords
  • social housing
  • third-party owners of a domestic heating system and
  • new self-build properties
Renewable Heat Incentive Scotland - Air Source Heat Pumps
Air Source Heat Pump
Renewable Heat Incentive Scotland - Biomass Boilers
Biomass Boiler
Renewable Heat Incentive Scotland – Financial Incentives

Renewable Heat Incentive Scotland financial incentives are paid to the owner of the renewable heating system quarterly for seven years.

Renewable Heat Incentive Scotland Tariffs are at a set rate of ‘pence per kWh (kilowatt hour)’ of renewable heat energy generated.

To be eligible for Renewable Heat Incentive Scotland, solar thermal panels must ONLY supply hot water for your home, whereas all of the other eligible renewable heating systems can provide space heating, with or without hot water. RHI scheme rules only apply to these renewable energy technologies if they use a ‘wet’ central heating system such as central heating radiators.

If the heat demand from your EPC is 18,000 kWH and you install a biomass boiler, your annual Renewable Heat Incentive Scotland tariff receipts will be 18,000 x 6.88p = £1,238.40 or £309.60 per quarter. This is payable to you for 7 years and rises with inflation each year.

Domestic Renewable Heat Incentive – Financial Incentives
Domestic Renewable Heat Incentive FAQs

Are the Renewable Heat Incentive tariffs guaranteed?

Once you install your new renewable energy heating system and successfully apply for Renewable Heat Incentive tariff payments, they are guaranteed to be paid to you every three months for seven years.

In fact the actual payments increase by the rate of inflation each year.

The Government has the right to change the tariff amounts payable but only to new applicants. Once you have been accepted on to the scheme your tariff  payments are guaranteed.

Are Renewable Heat Incentive tariffs taxable?

Renewable Heat Incentive tariffs are not subject to taxation.

Will I need an EPC before I apply for the Renewable Heat Incentive?

One of the rules of the Renewable Heat Incentive scheme is that your home must be capable of having a Domestic Energy Performance Certificate (EPC). That is to prove it is a residential property and not a business.

Also, because your RHI tariff payments are based on the deemed heat demand for your home, and this is found on your EPC, your actual tariff payments cannot be calculated without an EPC.

What if I sell my home before whilst I am receiving RHI tariff payments?

If you sell your home whilst you are still receiving RHI tariffs, you must inform Ofgem so that future payments can be made to the new owner.