Renewable Heat Incentive (RHI)
The Renewable Heat Incentive (RHI) is a government payment for businesses or households that generate heat using renewable sources of energy. It is the first financial support scheme for renewable heat of its kind in the world. The RHI is different to a Feed-In-Tariff (FIT) which is a government backed incentive for generating electricity using solar panels.
The RHI is being introduced in two phases. The first phase in November 2011 is targeted at the non-domestic, high heat generators; industries, businesses and the public sector which account for 38% of the UK’s carbon emissions.These apply to commercial, industrial, Schools & Colleges where a legitimate heating need can identified. See our section on RHI & business here.
Under the second phase, scheduled for Spring 2014 (the timetable for the introduction is below), homeowners who generate heat through renewable energy sources will be eligible for tariff support.
Responsibility for the installation of renewable energy source technology lies with the user. Once the system is installed, the user should then register the system with Ofgem who will be administering the scheme. Anyone using appropriate renewable energy systems will then be paid from money funded by the Treasury.
The government has finally given us all the news we wanted to hear, the Renewable Heat Incentive (RHI) launched in spring 2014 rates have been revealed and look very tempting for homeowners in the UK. The scheme encourages home owners to move from expensive oil, LPG and electric heating to modern renewable heating systems. As well, households who have installed renewable heating technology since 15 July 2009 will qualify and will recieve grants from the Renewable Heat Premium Payment Scheme (see below).
Renewable heating systems offer a grant and a payment back from the RHI for 20 years this payment has been condensed into a 7 year return to allow a quicker repayment time.
Proposals contained within include the publication of RHI tariff ranges for renewable technologies which are MCS certified and meet relevant required standard:
The tariff levels have been set at:
- Solar thermal: 19.2p/kWh (minimum)
- Biomass boilers: 12.2p/kWh
- Ground source heat pumps: 18.8
- Air source heat pumps: 12.2p/kWh
Please try our renewable heat incentive calculator, enter your current heating arrangements and costs then chose the preferred Renewable heating system. We will then work out the costs and returns from this scheme.
You can book a Free Energy Assessment survey today – we’ll discuss your options and help you to decide what’s best for your needs.