Supporting the Renewable Heat Incentive


The overall aim of the Renewable Heat Incentive (RHI) is to grow the market for systems based on renewable technologies by 700% by 2020 – ie, a total of 110,000 commercial installations. The £860m non-domestic RHI opened in November last year to make it more financially attractive to install low carbon heating systems like heat pumps, biomass boilers and solar thermal panels.

Current position 

The Department of Energy and Climate Change has announced that the budget will be limited to £70m this financial year. It will suspend the subsidy for the rest of the financial year if it forecasts that the budget will be exceeded. This decision will be triggered if 97% of the budget is used up.

Non-domestic RHI schemes over 45kW do not require a Microgeneration Certification Scheme (MCS) but systems need to be pre-approved by OFGEM, which is responsible for the administration of the scheme. B&ES has established a list of members who are able to ‘sign off’ designs and OFGEM has named B&ES within their RHI advice documentation.

B&ES recently published a new Best Practice Guide for heat metering at the instigation of OFGEM. The guide is designed to help installers ensure that heat meters are correctly integrated into systems to allow the correct RHI payments to be made.

The domestic RHI will start in April 2014 - read details here.

Next Steps

B&ES will continue to work closely with DECC and OFGEM to ensure that the significant opportunities available to members through the non-domestic and domestic RHI schemes are realised.

DECC has said that it will launch a formal consultation in the summer to explore different policy options to ensure the RHI stays within its budget. This could include a system to lower tariffs as the scheme grows. The B&ES will monitor this closely and respond accordingly.


For more details e-mail David Frise