The Domestic Renewable Heat Incentive (Domestic RHI) is a government financial incentive to promote the use of renewable heat. … People who join the scheme and stick to its rules receive quarterly payments for seven years for the amount of clean, green renewable heat it’s estimated their system produces.
The Domestic RHI is due to close to new applicants on 31 March 2022. Once commissioned, payments will be made over the period of 7 years.
The Non-domestic RHI closed to new applicants on 31 March 2021. Systems with a rated heat output below 100 kW must be installed and commissioned by this date.
Larger systems (100 kW and above) need to submit a Stage 2 Ofgem application by this date, and may commission up until 31 March 2022. However, no RHI payments will be made after 31 March 2041, so systems commissioned after 31 March 2021 will receive less than 20 years of RHI payments. Please note that a ‘Stage 2’ Ofgem application requires the project to have obtained all necessary consents and have full funding secured.
In April 2022 (after the current RHI scheme ends) the Government are expected to start a new scheme to help people with the costs of installing a renewable energy heating source that cost considerably more than your standard boiler. These Heat pumps have already seen great effects in countries like Sweden and the UK Government are expecting the same in the UK.
If you’re considering getting a renewable energy source for your household in the future then be sure to take advantage of the new scheme that will become available in April 2022.