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.
This rate now sits at 19.51p/kWh for solar thermal applications submitted before January 2016. 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.