Renewable Heat Incentive (RHI)

Topic Progress:

The aim of the Renewal Heat Incentive is to support the introduction of renewable heating technology

Solar Thermal Panel

Solar water heating systems, or ‘solar thermal’ systems, use heat from the sun to warm domestic hot water. Often a conventional boiler or immersion heater is used to make the water hotter, or to provide hot water when solar energy is unavailable.

Requirements

A minimum of five square metres of roof space which faces East to West through South and receives direct sunlight for the main part of the day. Alternatively you can locate the panels can be fixed to a frame on a flat roof or hung from a wall. You may require a larger hot water cylinder.

Return on Investment

  • Cost of installation £4,000
  • Annual fuel saving £55/year
  • Government grant (av.) £350/year

ROI – 10%

Air Source Heat Pump

Heat pump absorbs heat from the outside air. This heat can then be used to heat radiators, underfloor heating systems, or warm air convectors and hot water in your home.

Requirements

Outside location against a wall, preferably sunny. A well insulated home. Works best with underfloor heating system.

Return on Investment

  • Cost of installation £10,000
  • Annual fuel saving £500/year
  • Government grant (av.) £1140/year

ROI – 15%

Ground Source Heat Pump

A ground source heat pump circulates a mixture of water and antifreeze around a loop of pipe, called a ground loop, which is buried in your garden. Heat from the ground is absorbed into the fluid and then passes through a heat exchanger into the heat pump. The ground stays at a fairly constant temperature under the surface, so the heat pump can be used throughout the year.

Requirements

Outside space large enough to dig a trench or borehole (the ground loop can be sunk vertically).

Return on Investment

  • Cost of installation £14,000
  • Annual fuel saving £500/year
  • Government grant (av.) £2400/year

ROI – 20%

Biomass System

A wood-fuelled heating system where a stove or boiler burns logs or pellets. A stove would heat a single room, a boiler is connected to a central heating and hot water system.

Requirements

Space to store pellets or wood

Return on Investment

  • Cost of installation £12,000
  • Annual fuel saving £0
  • Government grant (av.) £1200/year

ROI – 10%

How to apply for RHI

More information is available from Ofgem at https://www.ofgem.gov.uk/environmental-programmes/domestic-rhi/applicants