How will the RHI work?

The Department of Energy and Climate Change (DECC) recently hosted a web chat to answer questions about the Renewable Heat Incentive (RHI). We have summarised the most interesting questions and responses here:


Can the team confirm that RHI payments will not be affected for anyone currently receiving FiT’s for solar PV or turbine installations?

Solar PV to complement a heat pump

Answer: There is no penalty for doing more. If you have FiT technologies and install an RHI technology alongside them then you will benefit from both schemes.

Source Energy’s comments: This is fantastic, many of our clients have chosen in the past to pair heat pumps with solar PV to further minimise or even eliminate their heat pump’s running costs, find out more about our PV partners Cornwall Solar Panels and Konnected.


If the Domestic RHI goes live in April 2014, will the first RHI payments be in July 2014 and every quarter after that for 7 yrs?

Answer: Yes. We plan to launch the scheme in spring 2014 and will pay every 3 months in arrears.

Source Energy’s comments: Over the 7 year period you will benefit from a regular income which will help offset the initial installation costs of the system. Learn how much you could earn >>


I have a brought a new build house with a ground source heat pump in it, will I be eligible for payments?

Answer: No. New-build is not eligible for the scheme, unless you qualify as a self-builder.

Source Energy’s comments: We are very pleased that self builders will be eligible for this scheme. Whilst buyers of new properties will still benefit from the great efficiencies and low running costs associated with heat pumps.


Can you confirm that the newly released domestic RHI tariffs are available to people that are on the mains gas grid as well as those who are off the national mains gas grid?

Answer: The tariff payment will be the same for an on gas and off gas household. However gas systems are typically cheaper to install and run compared to for example an oil boiler.

Source Energy’s comments:  We are surprised at this inclusion, as all recent grant funding has been for off-gas properties. This confirmation is a great incentive for those living on the main gas grid looking for a low carbon and renewable alternative to their current heating system, or who have installed solar PV which would offset the heat pump running costs. Heat pumps give homeowners a level of resilience to rising fuel costs and eliminate the risks such as carbon monoxide poisoning.


The RHI document says that a heat pump has to be classed as renewable in order to claim the RHI. This means that a minimum SPF of 2.5 is required. Does this mean that an air source heat pump with a flow temperature of 55 deg C (and therefore according to the heat emitter guide has an SPF of 2.4) will not be eligible for RHI payments?

Answer: You are correct that new ASHP systems with a design emitter flow temperature of 55oC won’t be eligible for the scheme

Source Energy’s comments: Source Energy carefully select their manufactures and carefully design heating distributions to ensure that this criteria is met and that the systems runs at maximum efficiency. Learn more about Mitsubishi Ecodan air source heat pumps >>


You can read the full web chat here >>


Source Energy have calculated for guidance purposes that a typical 3 bed new build property meeting the RHI requirements, could receive over £15,000 by installing a ground source heat pump and over £6,500 by installing an air source heat pump. Find out more >>