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Renewable Heat Incentive (RHI)

Renewable Heat Incentive (RHI)

Government incentive to promote use of renewable technology

What is the Renewable Heat Incentive?

This is a Government backed scheme to try and accelerate the use of renewable heat energy, by providing a financial incentive to install renewable heating in place of fossil fuel burning equipment.

How will the RHI be implemented?

It will be phased in, initially, by targeting the non-domestic sector in the first phase, with long term tariff support. This will cover everything from small business and community heating projects through to large scale industrial heating. This initial phase came into force 28th November 2011

This first phase will also include the introduction of the Renewable Heat Premium Payment. This is purely for the domestic sector and will be aimed to provide a direct payment to households to subsidise the cost of the installation of a qualifying renewable heating system. The second phase which will target the domestic sector and which will include long term tariff support, will be introduced in 2012. This will be to coincide with the Green Deal for Homes. As well as the above consideration will be given to support other technologies and fuels that was not covered within the initial launch.

Key aspects of the RHI

Fuels and technologies supported will include :-

• Solid and gaseous biomass, solar thermal, ground & water source heat pumps, on site biogas, deep geothermal, energy from waste and injection of biomethane into the grid.

• All non-domestic sectors in England, Scotland & Wales

• Any payment within the scheme must be claimed by, and paid to, the owner of the heat installation or the producer of the biomethane

• Payments will be made quarterly over a 20 year period

• For small and medium sized plants (up to and including 45kWth), both the installers and equipment has to be certified under the MicrgenerationCertification Scheme (MCS) or equivalent standard.

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