The Renewable Heat Incentive (RHI) was launched in November 2011 to reward the non-domestic sector for generating and using renewable energy to heat their premises. The scheme provides long-term financial support to industry, business and public sector organisations.
RHI is the main scheme of the Government’s heat strategy and will help the UK to reduce greenhouse gas emissions and will also contribute to the UK targets for reducing climate change.
There are many types of heating covered by the RHI, including biomass and heat pumps (ground and water source), and payments are made every three months and spread over 20 years. The amount you receive depends on the type of technology you install, the capacity of the equipment, and how much energy you use.
Renewable Heat Incentive (RHI) Examples:
The tariff associated with small and medium biomass heaters is split over two tiers and is based on the amount of energy used, similar to regular energy bills. Tier 1 offers payments for energy used up to a certain limit, and if you go over this limit the rest of the energy is paid at tier 2.
Small biomass with a capacity of less than 200 kWth will get you 8.3 pence per kWth at tier 1 or 2.1 pence per kWth at tier 2., whilst medium biomass that produces between 200 and 999 kWth will get you between 5.1 pence per kWth at tier 1 or 2.1 pence per kWth at tier 2.
Large biomass heaters have only one tier, and with a capacity in excess of 1000 kWth will get you 1.0 pence per kWth.
Heat Pumps (ground and water source)
A small heat pump with a capacity to produce less than 100 kWth will get you 1.0 pence per kWth, whilst a large heat pump that can provide in excess of 100 kWth will get you 3.4 pence per kWth.
Renewable Heat Incentive Eligibility
To benefit from the Renewable Heat Incentive (RHI) you must meet the eligibility criteria to receive payments. To name a few criteria, the business/industry must have installed the technology after 15th July 2009, the technology must have a certain capacity, and the equipment must use liquid or steam to deliver the heat. The installer employed and the equipment itself must also have MCS certification (or equivalent) if applicable to the type of installation.
For full details on RHI and the eligibility criteria contact Ofgem or read the government guide to the Renewable Heat Incentive.
Please note that the domestic RHI will be closing on 31st March 2022.