Fossil fuels have been around since time immemorial. It is not until decades ago that they were linked to the destruction of the ozone layer and the cause of extreme climatic changes. Since this discovery was made, the world has been moving towards putting an end to the use of these sources of fuel. They have a high carbon dioxide emission, which the main cause of extreme climate changes. To encourage the world to move to renewable energy sources, numerous incentives have been introduced. In Europe, the incentive making the largest impact is the domestic RHI.
What is Domestic RHI?
The Domestic Renewable Heat Incentive (also known as Domestic RHI) is a government financial incentive that is designed to promote the use of renewable energy in heating. Homeowners qualify for the incentives when they switch to heating systems that rely on eligible renewable energy sources. This is aimed at reducing the carbon emission in the United Kingdom as well as meeting the renewable energy targets.
Not everybody is eligible for this scheme. For starters, you must be a homeowner, self-builder, or a landlord to qualify for these incentives. Once you qualify, the bus does not stop there. You are required to adhere to set rules in order for you to receive quarterly payments for the next seven years. The amount you get will depend on the system you use, amount of renewable heat that is produced as well as the prevailing rates. The rules keep on changing and it is up to you to keep up with them. You can also find the current tariff rates online with ease.
Since it was introduced back in 2014, the scheme has seen thousands of people join and receive the payments. The original UK renewable heat incentive concepts can be seen here.
Domestic and non-domestic
The domestic Renewable Heat Incentive is the most popular. This is because it is used by individuals. There is, however, the non-domestic RHI. These use tariffs that are different from those in the domestic RHI. More so, the eligibility requirement, governing rules, and the application process are different. In both cases, your building has to be assessed and an Energy Performance Certificate (EPC) issued.
The EPC provides information on the property’s energy use and gives recommendations on ways to reduce energy consumption and to save money. The EPC is required asit shows proof that your home has been evaluated as a domestic dwelling. You will not be eligible for the domestic RHI scheme without this certificate. It is good to note that the EPC is required every time you want to buy, sell, or rent a building.
Deciding on whether to use the domestic or non-domestic RHI will depend on your system needs. If the renewable heating system you have heats a single home for which you have the domestic EPC, then domestic RHI will be what you need. The non-domestic RHI is for the commercial, industrial, and public premises. Schools, organizations, hospitals, and businesses need to apply for the non-domestic RHI.