The Renewable Heat Incentive (RHI) is a Government backed scheme set up to encourage and financially reward businesses, homeowners and communities to take up renewable heat technologies. This will help to cut carbon, reduce fuel bills and help hit reduction targets.
The Government’s aim of the RHI is to increase the heat produced from renewable sources from 1% to 12% in 2020 in order to make a large contribution towards their 2020 ambition.
The RHI has been introduced in 2 phases:
Phase One – Commenced in November 2011 and is applicable to non-domestic properties such as businesses and commercial units. Phase one provides financial incentives to non-domestic renewable heat generators and producers of bio methane for the life of the installation up to a maximum of 20 years.
Phase Two – Is the domestic element of RHI and is due to launch in spring 2014. It is targeted, but not limited to properties which are off mains gas across England, Scotland and Wales. Phase two will be open to owner occupiers, private landlords, registered providers of social housing, third party owners of heating systems and self-builders.
The exciting part of the domestic RHI is that it will be available to those who have installed an eligible technology since 1st July 200 – providing the criteria are met.
The domestic tariff levels are set out below and will be paid on a quarterly basis for 7 years.
Air Source Heat Pumps 7.3p/kWh
Biomass Boilers 12.2p/kWh
Ground Source Heat Pumps 18.8p/kWh
Solar Thermal 19.2p/kWh
The RHI is a world first scheme and promises to substantially support the improvement in UK efficiency. For more information please visit the Energy Saving Trust website.
In order to be eligible for RHI payments applicants must complete a Green Deal Assessment before applying and must also have a minimum loft insulation level of 250mm and have cavity wall insulation where applicable.
All installations and installers must be MCS certified.
Funding Your Renewable Technology
The Green Deal may allow you to get help with the upfront costs of renewable heat technology, for more information visit the Energy Saving Trust website.
You may also be eligible for a Renewable Heat Premium Payment voucher to get money off installations. The energy saving trust website can provide information on this. Please note this will be deducted from RHI payments to avoid double subsidy.