Air Source Heat Pumps RHI Payments
Air Source Heat Pumps qualify for the Renewable Heat Incentive (RHI) which pays you for every kiloWatt hour your home requires to heat it, this is calculated by completing a Energy Performance Certificate (EPC) for your property.
The Renewable Heat Incentive only pays you based on the metered amount of renewable you use, it doesn’t apply to any gas your combi-boiler uses or the electricity used to power your Air Source Heat Pump.
The RHI is paid over 7 years and capped based on the EPC of your property and data provided from the installed meters, you will be paid from the metered renewable energy only.
So what are the RHI payments for a Hybrid Air Source Heat Pump?
To calculate the RHI we need to take into account the amount of electricity required for the Air Source Heat Pump to work, this is called the Seasonal Performance Factor (SPF). The Air Source Heat Pumps we install have a SPF of around 3.
So here’s the maths!
- Energy Performance Certificate (EPC) / Seasonal Performance Factor (SPF) = Energy required to power Air Source Heat Pump
- Energy Performance Certificate (EPC) – Energy required to power Air Source Heat Pump = Renewable Energy applicable to RHI
- Renewable Energy applicable to RHI x Current RHI Tariff = RHI payments per year for 7 years
Here’s an example with numbers
- 20,000 kWh (EPC) / 3 (SPF) = 6,666 kWh
- 20,000 kWh (EPC) – 6,666 kWh = 13.334 kWh (Renewable Energy applicable to RHI)
- 13,334 kWh x 7.42p (Current RHI Tariff) = £989.38 per year
Renewable Heat Incentive payments are tax free and indexed linked for 7 years. The RHI payments for Air Source Heat Pumps are capped and paid on your meter reading. So, if the meter measures that you have produced 75% renewable energy into the property you will be paid 75% of the capped amount.
The SPF figure can range between 2.7-4.3 depending on the efficiency of the system in your property and the Domestic RHI payments can vary significantly dependant within this range. Therefore, the estimate you receive from this calculator may vary from the actual payments you receive when applying to Ofgem.
The Ofgem website has a very simple calculator where you can work our the potential RHI returns for yourself https://renewable-heat-calculator.service.gov.uk/
Figures are correct as of 2nd September 2015.
Do I need a meter to claim the RHI on my Hybrid Air Source Heat Pump?
Hybrid Air Source Heat Pumps, using another fuel as well as the renewable source, require metering in order to receive Domestic RHI payments. As part of the install you’ll need one heat meter and one electricity meter and submit these readings to Ofgem to receive payment. For more details on metering please visit the Ofgem website.
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How do I get paid?
It couldn’t be easier. Under the RHI scheme, you will receive regular quarterly payment for seven years directly into your bank, it is tax free and linked to inflation.
How do I qualify for the Renewable Heat Incentive?
To claim the funds and qualify for the RHI you need to have an approved Air Source Heat Pump installer, like Euro Energy Services. The system that you install must be certified under the Microgeneration Certification Scheme (MCS) by an accredited installer and meet relevant standards for the technology.
You will also need to have your home home assessed by a Green Deal advisor to ensure it meets minimum energy efficiency requirements and you will receive an Energy Performance Certificate (EPC) that you will need to complete your registration.
If you don’t have a valid Energy Performance Certificate available, we can provide this service to you and we will send one of our qualified and accredited Green Deal Advisors to complete the assessment.