The Renewable Heat Incentive

The Renewable Heat Incentive Explained

The Renewable Heat Incentive (RHI) is a government financial incentive scheme to encourage the installation of renewable heating systems. If your system meets the schemes eligibility requirements, you will receive regular “tariff” payments for 7 years for renewable heat generated. RHI tariff rates will change annually in line with the Consumer Price Index. Based on the preliminary design for a Stiebel Eltron WPL 15 AS at your property this means that the estimated RHI you would received over the 7-year period would be £6306-£8409.

For more general information about the RHI see the Energy Saving Trust website, whilst the full version of the Renewable Heat Incentive can be read on the OFGEM website.

Heat Pumps and the RHI

Under the RHI you will receive qarterly payments based on a combination of the amount of heat your property uses and the efficiency of the system. You are compensated for the renewable heat your system produces, calculated from the heating and hot water requirements specified on your EPC. The efficiency of the GSHP or ASHP is determined in an MCS Performance Estimate we produce after the final heat loss calculation.

The amount of electricity required to generate heat is calculated from the specific heat pump model’s SCOP factor. This is the ratio of the heat delivered to the total electrical energy supplied over the year. A heat pump with a SCOP of 3.0 will deliver approx. 3kWh of heat for every 1kWh of electricity used. All Air Source Heat Pumps we install exceed the minimum SCOP of 2.5 required to qualify for the RHI.

The RHI application process

To apply for the Domestic RHI you must meet the EPC requirements detailed on page 4.
The heat pump we specify must be registered on the MCS product database (which it will be), full heat loss calculations must be produced and the minimum SCOP of 2.5 must be met to qualify.
Once the system is installed we produce a handover pack for you which includes the MCS Certificate and final compliance documentation required to make your application.


If your property is occupied for more than 6 months of the year and the heat pump is able to provide all your heating needs, you are not required to have the system metered.
However, if the property is unoccupied for at least 6 months of the year or if your heat pump is being combined with another heat source (such as a boiler), then metering will be required. This compulsory metering will measure the renewable heat production and your compensation will be paid according the meter reading, capped at the figures from your EPC. Metering does not impart a significant cost increase for installations but if metering is required, we will discuss options with you and if we have been made aware of the situation our quotation will include any costs involved.

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