If you’ve been thinking about greener heating for your home, you might have come across the Renewable Heat Incentive (RHI) scheme. We want to walk you through how it worked (and sort of still works, in a limited sense), who was eligible, and why you might care-especially if you’re wondering whether heat pumps make sense (spoiler: they often do).

What was the RHI scheme?

The RHI was a UK Government financial incentive designed to encourage the uptake of renewable heating technologies-basically, heating your home or business using renewables instead of fossil fuels.

Originally, the non-domestic part (for businesses etc) launched in November 2011. The domestic version (for homeowners and landlords) kicked in on 9 April 2014. The idea was simple enough: you install an eligible renewable heating system (like a heat pump, biomass boiler, or solar thermal), generate renewable heat, and receive regular payments for that heat produced over several years. Those payments helped offset the higher upfront costs and encouraged households and organisations to move away from fossil fuels.

In short: big ambition, green heating, money back.

Who was eligible - and what was covered?

It’s important to emphasise that eligibility differed depending on whether you were in the domestic or the non-domestic scheme.

Domestic scheme (households):

• Available in England, Wales and Scotland.
• You had to install an eligible renewable heating system (such as air source heat pump, ground source heat pump, biomass boiler, or solar thermal).
• Your property needed a valid domestic Energy Performance Certificate (EPC) issued within 24 months.
• Once accepted, payments were made quarterly for seven years.

Non-domestic scheme (businesses, public sector, etc):

• Covered renewable heating installations in non-household buildings.
• Payments were typically over a longer time (20 years) and based on actual heat output.
• Eligible technologies also included solar thermal, deep geothermal, biomass and heat pumps.

Important caveat: The scheme has closed to new applicants.

• The domestic RHI scheme closed to new applicants on 31 March 2022.
• The non-domestic RHI closed earlier for new applications, with only existing participants continuing to receive payments.

So if you’re reading this thinking “Great-I’ll apply tomorrow!”, unfortunately, you’re too late for new joiners.

Why did it matter (and why still pay attention)?

We think there are a few key reasons you might care:

1. Financial incentive: When it was live, the RHI provided payments that helped offset the cost of installing renewable heating. That smoothing of cost made the leap to cleaner systems more feasible.
2. Carbon reduction and future-proofing: Installing renewables means less reliance on fossil fuels, lower carbon emissions, and alignment with national climate goals. The RHI was part of a bigger picture to decarbonise heating in the UK.
3. Upgrade path still active: Though RHI is closed to new applicants, many homes that joined are still benefiting from payments. And if you’re looking to install renewable heating today, the RHI’s structure provides a useful reference for understanding potential future incentives.
4. Link to heat pump investment: If you’re asking “Are heat pumps worthwhile investment?”, then understanding RHI helps because heat pumps were among the eligible technologies. And while the scheme is closed, the broader context-costs, savings, incentives-is still relevant.

How did payments work (and how were they calculated)?

Without diving into every detail (tariffs changed over time), here’s the general idea:

• Once your system was accredited, you received payments quarterly for domestic installations.
• Payments were based on the type of technology, size, heat output and tariff rates set for that category.
• For domestic users: Payments continued for seven years.
• For non-domestic users: Payments ran for up to 20 years, depending on the installation.

So yes, it rewarded renewable heat generation directly-and the better your system’s performance, the more you earned.

What happens if your property already has an RHI-accredited system?

If you move into a home that already has a system accredited under RHI, you might be able to take over the payments (in the domestic scheme) by registering the change of ownership. It’s worth checking if your home already has a renewable heating system registered-it could be an unexpected bonus.

What this all means for today - and for you if you’re considering installing renewables

Even though you can’t apply for RHI now, it doesn’t mean renewable heating isn’t viable. Quite the opposite:

• The existence of RHI shows that government policy has supported renewable heating, so the technology is now far more mainstream.
• Other schemes or grants are currently available (for example, the Boiler Upgrade Scheme in England and Wales).
• If you install a heat pump (or another renewable system) now, you’ll still benefit from lower running costs (depending on usage) and from future-proofing your home.
• If you’re on the fence about heat pumps: we’d say yes, they are a worthwhile investment-but as always, it depends on your property’s insulation, heating demand, and installation quality.

P.S. - interested in having your own heat pump installed, regardless of the government’s plans for upcoming schemes? Explore air-to-water heat pump options here at Mr Central Heating.

Key take-aways

• The Renewable Heat Incentive was a major scheme aimed at promoting renewable heating-but it’s now closed to new applicants.
• Even so, the lessons remain: the right renewable heating system can lower your bills and your carbon footprint.
• If your property already has an accredited system, you might still be eligible to receive ongoing payments.
• For anyone planning a renewable installation today, treat RHI as an example of how incentives can work-and focus on the grants and schemes available now.

Greener heating might not come with quarterly cheques anymore, but it’s still one of the smartest upgrades you can make. Cleaner, quieter, and future-ready-renewable systems like air-to-water heat pumps aren’t just good for the planet, they’re good for your comfort too.

Want to stick around? Take a look at our latest blog: “Are heat pumps a worthwhile investment?”