Page type: primary-anchored (mirrors Renewable Heat Incentive Scheme Regulations 2018, SI 2018/611)
Renewable Heat Incentive (RHI) Regulations
The Renewable Heat Incentive Scheme Regulations 2018 created the RHI, a tariff-based subsidy paying installation owners per kWh of renewable heat generated. The scheme closed to new applications on 31 March 2021 but existing installations continue receiving payments for up to 20 years.
Primary source: ~/knowledge/sources/legislation/uk/si-2018-611-rhi.md
Last updated: 2026-04-05
Scheme status
Closed. No new applications from 31 March 2021 (limited extensions to 31 March 2023 for pre-committed investors). Existing accredited installations continue payments for their full tariff lifetime, typically 20 years. The last RHI payments will be made around 2041-2043.
The Boiler Upgrade Scheme (SI 2022/565) replaced the RHI for domestic heat pumps and biomass boilers, using a one-off capital grant rather than ongoing tariff payments.
How the RHI works
Owners of accredited renewable heat installations receive periodic payments from Ofgem based on metered heat output. The payment rate (p/kWh) depends on the technology and installation capacity. Tariffs are set at accreditation and adjusted for inflation, with degression (reduction) for new applicants when deployment exceeds trigger levels.
Eligible heat uses: space heating, water heating, industrial processes, commercial cleaning and drying.
Covered technologies
| Technology | Key standard | Regulation |
|---|---|---|
| Solid biomass | Emission certificate/permit | Reg 5-6 |
| Solar thermal | Max 200 kWth | Reg 8 |
| Ground source heat pumps | CoP >= 2.9, SPF >= 2.5 | Reg 9 |
| Air source heat pumps | CoP >= 2.9, SPF >= 2.5 | Reg 10 |
| Shared ground loops | From 14 Dec 2016 | Reg 11 |
| Biomass CHP | CHPQA certified | Reg 12-13 |
| Geothermal | >= 500m depth | Reg 14 |
| Biogas | Combustion from biogas | Reg 15 |
| Biomethane | Grid injection via network entry agreement | Part 8 |
Small installations (45 kWth or below) must use MCS-certified installers and products.
Enforcement (Part 9)
Ofgem has graduated powers: payment withholding during investigation (up to 6 months, with 30-day reviews), payment reduction (up to 10% of quarterly payments for material failures), accreditation revocation for serious non-compliance, and overpayment recovery. Ofgem may inspect installations without notice.
Cross-references
- Boiler Upgrade Scheme, the successor capital grant scheme
- Energy Act 2008, ss.100, 104(2): enabling powers
- CHPQA Standard: CHP certification
- MCS standards: small installation quality assurance