Renewable Heat Incentive

What is the Renewable Heat Incentive?

The Renewable Heat Incentive (RHI) is a Government initiative to encourage people to generate heat from renewable sources.

The RHI works by encouraging users to replace existing fossil fuel heating systems such as oil, coal and gas with one of the supported renewable technologies which includes Ground Source Heat Pumps, Solar Thermal Panels, Biomass Boilers and Biomethane. The onus is on the user to pay for and install the new technology. Once installed the system is registered on the MCS installation database.

Who can benefit from the RHI?

Initially only UK based industrial, commercial and public sector organisations who meet the eligibility criteria will receive the RHI.  A second phase of the RHI scheme will see households moved to a similar form of long term tariff support.  The second phase will be timed to align with the Green Deal which is intended to be introduced in October 2012.

In the interim householders can obtain a grant towards the cost of installation between now and March 2012 in the form of RHI Premium.

How much money would I receive?

Commercial and Public Sector: Payments are calculated by multiplying the appropriate tariff for your installation by the amount of eligible heat generated. You will be paid on a quarterly basis, in line with the date of your accreditation onto the scheme. See tariff chart here.

Households:RHI tariff payments will start alongside the Green Deal from 2012. Finalised tariffs should be released this Autumn. Qualifying households can apply for a ‘Premium Payment’ incentive to invest in green heating systems. The payment for a Biomass Boiler system is £950 per unit.

Only householders off the gas grid in England, Scotland and Wales can apply for Premium payment (in other words those who currently rely on fuels such as oil, liquid gas, solid fuel or electricity for their heating). All successful applicants will have to meet certain simple conditions.

What are these conditions?

Your house must be your main home and it must have basic energy efficiency measures in place. This means you will need to confirm you have loft insulation to 250mm and cavity wall insulation, where these measures are practical.

The renewable heat product you will be installing must be listed under the Microgeneration Certification Scheme, and be installed by someone registered under the scheme.

Once the equipment is up and running, you will be asked to fill in two customer surveys. You may also be chosen at random to have extra meters attached to your installation (free of charge)