The Renewable Heat Incentive

The Renewable Heat Incentive

Tariffs and payments

The Renewable Heat Incentive RHI
The Incentive, of which the domestic phase went live in April 2014, has been designed as a means to increase all UK heating generation from renewable energy sources.

It will operates in a similar way to the Feed-In Tariff (FIT) as both schemes offer a payment for every kilowatt hour (KW/h) of renewable energy a system produces.
On 11 July 2013 the Department of Energy and Climate Change (DECC) revealed that solar water heating will benefit from a minimum tariff rate of 19.2p/kWh.

The Renewable Heat Incentive also applies to other renewable heat systems such as heat pumps and biomass boilers.
Key aspects of the Renewable Heat Incentive
1. The scheme supports a range of technologies, including solar thermal, ground-source heat pumps and biomass.
2. It will support heating at all scales, including households, businesses, offices, public sector buildings and industrial processes in large factories.
3. The payment you receive will be based on the amount of heat your system produces. According to the Department of Energy and Climate Change, the tariff levels are designed to bridge the financial gap between the cost of conventional and renewable heat systems at all scales.

 The Renewable Heat Incentive RHI

Since there is a finite pot of money available for the RHI payments, it is likely the current tariffs will get smaller over time (again much like the solar feed-in tariff) therefore if you are considering installing a renewable heating technology it is worth moving quickly to ensure you get the highest payment rate!

The government do a quarterly review of the RHI scheme and adjust the tariff amounts in line with the total RHI budget so as to control the costs. Therefore if you install a renewable heating system you will get (and lock in) a better rate potentially than someone who installs a renewable heating measure 2 years down the line.

RHI payments are estimated based on heat demand rather than Metered

Tariff payments will be deemed rather than metered, which means they will estimate the heat demand of the property and base the RHI payment on that. s!

 

The Renewable Heat Incentive RHI