UK Government release response to RHI consultation

15th December 2016

The Renewable Heat Incentive (RHI) was introduced to encourage the UK to transition to low-carbon heating. The incentive scheme provides financial incentive to households and non-domestic consumers to encourage the move from conventional heating options to low-carbon alternatives.

The UK Government have proposed to implement increases in the tariffs in Spring 2017 (subject to parliamentary approval). RHI will remain available on Air Source, Ground Source, and Biomass installations. The increased tariff will be applicable to participants who apply for the scheme on or after 14 December for new installations, however the increased tariff will not come into effect until the regulations come into force.


Air Source Heat Pump 10.02 pence per kilowatt-hour (p/kWh)
Ground Source Heat Pump 19.55p/kWh
Biomass installations 6.44p/kWh


In addition to the tariff increases, heat demand limits will be introduced. These limits will be set at: 20,000kWh for Air Source Heat Pumps, 25,000kWh for biomass boilers and stoves and 30,000kWh for Ground Source Heat Pumps. However, these limits will not disqualify larger properties with higher heat demands from applying, it just will cap the amount of RHI available. There will be no heat demand limit for solar thermal.

An electricity meter will be required to be installed on all new air and ground source heat pumps applying for support under the scheme. However, the payments will still be made based on deemed heating requirements.