Greg Barker has today announced a range of further details on the Domestic Renewable Heat Incentive, along with proposals within 3 consultations which cover both the domestic and commercial renewable heat incentives. This announcement brings more certainty to an industry which will be instrumental in meeting the government’s carbon targets and gives many installers the confidence that the Renewable Heat market is going to see substantial growth over the coming years. The domestic RHI is set for launch in summer 2013 and today’ announcement includes proposed returns to householders.

The announcement confirms details on the domestic Renewable Heat Incentive along with 3 consultations covering both the domestic and commercial RHI. The domestic Renewable Heat Incentive will cover consumers who have installed renewable heat technologies such as; Heat PumpsSolar Thermal and Biomass after 15th July 2009. It is expected and proposed that householders will be paid for the heat they produce with their renewable heat technology.

Some of the key points in the domestic part of the announcement are;

  • Indicative tariff ranges for air source heat pumps (6.9-11.5p/kWh), biomass boilers (5.2-8.7p/kWh), ground source heat pumps (12.5-17.3p/kWh) and solar thermal technologies (17.3p/kWh) that are MCS certified and meet relevant required standards
  • Payments for householders over seven years for each kWh of heat produced for the expected lifetime of the renewable technology and based on deemed heat usage
  • Tariff levels set to provide a better return for householders living off the gas grid
  • Budget management system similar to one introduced for the Feed-in Tariffs scheme
  • Minimum energy efficiency requirements based on Green Deal assessments

Key points on the commercial part of the announcement are;

  • Inclusion of heating only Air to Air heat pumps with a proposed tariff of 0.97p/kWh for all sizes of installation
  • Inclusion of Air to Water heat pumps with a proposed tariff of 1.7p/kWh for all sizes of installation
  • Inclusion of biomass direct air heaters with a proposed tariff of 2.1p/kWh under 1MW and 1p/kWh over 1MW
  • Extension of biogas combustion tariffs to installations over 200kW
  • Introduction of a specific tariff for heat from biomass CHP of a proposed 4.1pkWh
  • Introduction of bioliquid CHP tariff of 4.1p/kWh
  • Increased tariff for deep geothermal installations from 3.4 p/kWh to 5p/kWh
  • Increased range of waste feedstocks eligible for support
  • Minimum energy efficiency requirements for district heating, commercial and industrial space and water heating
  • Continuation of exclusion of reversible Air to Air heat pumps from the scheme

For the full DECC announcement please visit


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