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How are RHI payments calculated?

For the Domestic RHI, payments are based on the heat demand stated on the Energy Performance Certificate (EPC), adjusted according to the system efficiency (SPF):

Payment = (Heat demand stated on EPC) x (1- 1/SPF) x Tariff rate

However for this calculation the heat demand is limited to 30,000 kWh

Example: Single domestic property with 13 kW system that is eligible for ‘deemed’ payments, with EPC showing an annual heat demand of 35,000 kWh. The quarterly payments will be made on 30,000 x 1/4 x (1 – 1/3.5) = 5,350 kWh

For the Non-Domestic RHI, payments are typically made on metered heat usage:

Payment = (Heat generated) x Tariff rate

where the Tariff is at the Tier 1 rate initially and then drops to Tier 2

However, domestic properties qualifying for the Non-Domestic RHI under a ‘shared ground loop’ system will typically receive deemed payments based on the EPC, subject to the annual heat demand limit of 30,000 kWh.

Example: Two domestic properties with one 13 kW system per property, where both are eligible for ‘deemed’ metering. One EPC shows a demand of 35,000 kWh, the other 20,000 kWh. The quarterly payments will be made on (30,000 + 20,000) x 1/4 = 12,500 kWh in total. Payments will initially be at the Tier 1 rate. However the tier threshold is 2 x 13 x 1,314 = 34,164 kWh, so during the third quarter only 9,164 kWh will be paid at Tier 1, with the remaining 3,336 kWh at Tier 2. The final quarter will be paid entirely at Tier 2.

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The first step to develop a water source heat pump project is to conduct a Free Initial Heat Pump Assessment.

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Once complete, you will understand the site potential and be guided through the next steps to develop your project.