Renewable Heat Incentive

The Domestic Renewable Heat Incentive (Domestic RHI) is a government financial incentive to promote the use of renewable heat. Switching to heating systems that use eligible energy sources can help the UK reduce its carbon emissions and meet its renewable energy targets.

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.

Since opening in April 2014, the scheme has already seen thousands of people successfully join and receive payments.


The scheme ends April 2022 and will be replaced by a one off payment of £4,000 (subject to confirmation) 



To calculate your RHI payment visit the Governments RHI Calculator



Following are two RHI returns examples, every property will be different and the figures are based on an EPC (Energy performance certificate).



To check if your property has an EPC visit the EPC Register website 



Example calulation Daikin 8kw Heat Pump  


3 bedroom property estimated 10,000 KWhrs per year Hot water 2,500kwhrs 

45dc flow temperature


Total 12,000 Kwhrs x 71% (3.49 SCOP) = 8,520 Kwhrs x 10.71p/kwr = 


Total annual payments of £912.49 x 7 years = £6,387.44

Example calulation Daikin 16kw Heat Pump  

imgO1TA2OEN - Copy.png

4-5 bedroom property estimated 20,000 KWhrs per year Hot water 2,500kwhrs 

45dc flow temperature (capped at 20,000 kwhrs)


Total 20,000Kwhrs x 71% (3.49 SCOP) = 14,200 Kwhrs x 10.71p/kwr = 


Total annual payments of £1520.82 x 7 years = £10,645.74

RHI Process

The RHI scheme follows a very strict process which all Installers have to following, below is a list that should be followed when Installing an Air source heat pump.

  1. Technical Site Survey.

  2. System design and full room by room heat loss calculations.

  3. Noise calculations to ensure the location complies with planning rules.

  4. Check EPC (Energy Performance Certificate) renew if required.

  5. Check DNO list for connection (ensure the electrical Installation is large enough for the heat pump being Installed).

  6. Provide a full detailed Proposal Including running cost and RHI returns assessment.

  7. Signed contract with Installer

  8. Deposit protection registration

  9. Installation and commissioning of the system

  10. Notification of works

  11. Complete MCS compliance certificate.

  12. Issue MCS certificate

  13. Provide workmanship guarantee

  14. Create customer Handover pack and customer training.

  15. Guide the customer through the RHI application form with OFGEM

  16. Payments are made direct to the homeowner from OFGEM every quarter for 7 years. 


Download RHI Application Helpsheet
RHI help sheet pic.PNG

Estimated Fuel cost savings pence per Kwh


Heat pump running cost.jpg