Renewable Heat Incentive

A new government payment scheme, the Renewable Heat Incentive has been created to encourage people to invest in systems which generate heat from renewable sources.

Launched on 9th April 2014, the scheme aims to increase the amount of heat generated by renewable technologies such as biomass boilers, solar thermal panels and heat pumps. The Renewable Heat Incentive (RHI) will pay a subsidy to people installing these types of heating systems.

the government has launched the training voucher scheme in order to help the heating industry to get qualified in installing renewable heating systems.

Renewable Heat Incentive

For installers who are already qualified in heating and decide to train in heat based renewable technologies, there is £ 250,000 funding to support solar thermal, heat pumps, biomass installations. Vouchers will be limited to 10 per company where installers will be able to redeem it on an accredited course. To be eligible for solar thermal and heat pump training courses, the training must include a QCF assessment leading to a qualification accredited by an awarding organisation. Vouchers last for 3 months from date of issue and can only be redeemed once the training has been completed. Vouchers valued up to £500 or 75% of the total cost – whichever is the lesser amount – total must include VAT E.g. – A Solar Thermal Course is priced at £500 + vat totalling £600.

There is another £250,000 funding to help support apprentices for the same renewable technologies. It is only available if the apprentice has chosen to train in one renewable technology and wishes to add some more technologies. Apprentices who are training in traditional fuel installation will also be able to choose to train further in renewable technologies. The apprenticeship support vouchers are worth up to £2,500 (including VAT). A maximum of five vouchers per company will be available. To be eligible the company must be a small to medium-sized enterprise (SME).

Unlike non-domestic RHI, tradespeople will not be able to fill in the application for homeowners. The installation company must be an MCS member. When dealing with domestic consumers, you must comply with the RECC code of practice.

The heating system installed for your Domestic RHI customer can be the first installation for which you’re accredited under MCS, providing you can issue an MCS certificate for it.

Under MCS rules, you should produce an MCS certificate for each installation you have commissioned (within ten working days of the commissioning date).

Ofgem is responsible for administering the scheme. Householders who have installed an eligible renewable energy system since 15 July 2009 can claim RHI payments for every unit of heat generated. Payments are made quarterly, over a seven year period. The amount paid will depend on:

  • The type and (in some cases) the size of the system installed.
  • The amount of heat generated by the system measured in kilowatt-hours.

The scheme covers England, Wales and Scotland only.