The domestic renewable heat incentive offers ongoing payments when you make the switch to an eco-friendly heat pump. Find out more about how to claim.
Earn money for running your heat pump
We all know we need to lower our carbon emissions and make the shift towards renewable energy. To help you make the change, the government set up the domestic Renewable Heat Incentive (RHI) to encourage UK homeowners to switch to renewable home heating.
The domestic RHI offers quarterly payments over seven years. Your payments are calculated on a set of tariffs, based on the type of system you have installed in your home. It could all add up to thousands of pounds, helping you offset the upfront cost of installing your Daikin Altherma heat pump.
The domestic RHI is available for people living in England, Scotland and Wales in homes which are on or off the gas grid. To apply, you must own the property the renewable heating system is in, and the scheme is open to:
- Private and social landlords
Your first payment will be made three months after you apply, and set at the tariff rate applicable on that date.
Payments come from Ofgem – the government’s energy regulator – and are made every three months for seven years, as long as you remain eligible and follow the scheme’s rules.
Your tariff may differ depending on which type of system you have installed, and the amount you earn is calculated on a number of factors, including your home’s Annual Heat Demand (listed on your property’s Energy Performance Certificate).
You can explore the current tariffs on the Ofgem website, or use the government's RHI calculator to calculate what you could earn.
RHI payment example
For a typical four-bedroom home, your RHI payments could amount to between £7,000 - £10,000 over seven years.
Combined with your energy savings and running costs, that means you could make a total saving of up to £11,000 over the lifetime of your Daikin Altherma heat pump, compared to a typical oil boiler.
If you choose an eco-friendly heat pump to meet your heating and hot water needs, you’ll need to meet certain criteria to ensure you’re eligible for RHI payments.
There are a number of options eligible for the domestic RHI, including:
- Solar thermal panels (for hot water, only)
- Ground source heat pumps
- Biomass boilers
- Air source heat pumps – including a number of options from the Daikin Altherma range
When you choose Daikin to supply and install your heat pump, you can rest assured that your heat pump exceeds the criteria you’ll need to meet to qualify for RHI payments – giving you more time to focus on the other things which matter to you.
We have a range of heat pumps to suit every property. Why not take a look?
- Your heat pump should use a ‘liquid medium’ to heat your home – using traditional radiators, underfloor heating or heat convectors. Air-to-air heat pumps are not eligible for the domestic RHI.
- Your heat pump must be certified under the Microgeneration Certification Scheme (MCS). All Daikin Altherma systems are MCS accredited and RHI-ready.
- You must have an MCS Certificate for your installation – this means choosing an accredited installer, like one of the experts from our Sustainable Home Network. You’ll also need your home’s Energy Performance Certificate (EPC), which should be less than 24 months old
- The ‘seasonal performance factor’ – how efficient your heat pump is on average, in all weathers – must be at least 2.5. You can ask your manufacturer, or installer, about this. Every heat pump in the Daikin Altherma range has a seasonal performance factor exceeding the minimum standards for the RHI
Metering for performance
Domestic RHI applications are metered for performance, ensuring the electricity your system consumes meets certain efficiency standards.
You’ll either need a standalone on-board electricity meter, or a Metering and Monitoring Service Package as part of the scheme.
Visit Ofgem for more information.
Metering for payment
Under some circumstances your heat pump will also need to be metered for payment, so you can receive the right amount for the heat our system produces. This may apply if:
- You have a Hybrid system (e.g. a combined heat pump and gas boiler)
- You have a renewable heating system installed alongside a fossil fuel heating system
- You lived in your home for less than 6 months before applying for the domestic RHI
If you’d like to avoid the upfront cost of installing your renewable heating system, you have the option to choose an assignment of rights (AoR).
You’ll assign your rights to any RHI payments to an investor, who will in turn fund the purchase, installation and maintenance of your renewable heating system.
You can find out more about this scheme on the Ofgem website.