Renewable Heat Incentive (RHI)
The Renewable Heat Incentive (RHI) is a UK Government scheme set up to encourage uptake of renewable heat technologies among householders, communities and businesses through the provision of financial incentives. The UK Government expects the RHI to make a significant contribution towards their 2020 ambition of having 12% of heating coming from renewable sources. The Renewable Heat Incentive is the first of its kind in the world.
There are two phases to the RHI:
Phase 1: non-domestic installations in the industrial, business and public sectors (known as the non-domestic RHI or NDRHI). This scheme went live 28th November 2011 for any eligible systems installed since 15th July 2009.
Phase 2: the domestic element of the RHI (known as the domestic RHI or DRHI). is expected to be introduced in April 2014 following the consultation published in September 2012 and more recently the UK Government Heat Strategy.
Phase 1 - Non-domestic RHI scheme
Phase 1 of the RHI provides financial incentives for the life of the installations or up to a maximum of 20 years. Incentives are currently based on 4.18p per kWh with a tier 1 allowance up to 1314 peak hours for the nominal output of the boiler. This roughly works out at £550.00 per 10KW annually.
The payments for the non-domestic RHI tariff will be 8.8p per kWh and this will be paid quarterly. This scheme is based over 20 years and is tax free and linked to the retail price index.
For full information please seehttps://www.ofgem.gov.uk/environmental-programmes/non-domestic-renewable-heat-incentive-rhi
The Renewable Heat Incentive (RHI) is the Governments principal mechanism for driving forward the transition to deployment of renewable and low carbon heat over the coming decades. The RHI is a key contributor in achieving the UK’s share of the EU’s renewable energy targets and the carbon plan.
The government’s aim is to increase the deployment of renewable heat technologies in order to keep the UK on track to meet the 2020 target in the most cost effective way. The RHI scheme went live for the commercial sector in November 2011 and £860M has been set aside to pay the RHI. The RHI will be funded from general Government spending, not through the utility companies as was the case with the Feed in Tariff.
Phase 2 - Domestic RHI scheme
The homeowner will need to have a Green Deal Assessment carried out on their property. The assessor will produce an Energy Performance Certificate (EPC) which outlines the estimated heat usage for the property (covering both heating and domestic hot water). The RHI payments will be based on this figure. It is important that you have 250mm of loft insulation to qualify along with cavity wall insulation if appropriate (although solid walls are acceptable).If this is not present it will need to be installed with an updated assessment. It is possible to have a fossil fuel back up (usually an oil boiler or gas boiler) but these would have to have a heat meter fitted as these would be seen as an ineligible heat source and the kWh produced would be deduced from your EPC certificate.
The payments for the Domestic RHI tariff will be 6.43p per kWh and this will be paid quarterly. This scheme is based over 7 years and is tax free and linked to the retail price index.
For full information please see https://www.ofgem.gov.uk/environmental-programmes/domestic-renewable-heat-incentive-domestic-rhi