What is the Renewable Heat Incentive?
The RHI Scheme is the first of its kind in the world and will therefore be a world-leading scheme to provide long term support for renewable heat technologies, from household solar thermal panels to industrial wood pellet boilers. The RHI will represent over £850m of investment over the spending review period, driving a more-than-tenfold increase of renewable heat over the coming decade and shifting renewable heat from a fringe industry firmly into the mainstream.
The scheme will make payments to those installing renewable heat technologies that qualify for support, year on year, for a fixed period of time. It is designed to cover the difference in cost between conventional fossil fuel heating and renewable heating systems (which are currently more expensive), plus an additional rate of return on top.
Why heat?
Heat production is responsible for around half (49%) of the final energy demand consumed in the UK and roughly half of all UK’s carbon emissions. Taking action now to switch from fossil fuels to cleaner and more sustainable green sources of energy will reduce the impact that our heat requirements have on the environment and help ensure the UK has an energy supply that is safe, secure and reliable.
When will the scheme start?
The scheme is starting with non-domestic systems and will cover the following technologies payable at the following rates:
| Levels of support | |||||
|---|---|---|---|---|---|
| Tariff name | Eligible technology | Eligible sizes | Tariff rate
(pence/ | Tariff duration
(Years) | Support calculation |
| Small biomass |
Solid biomass; Municipal Solid Waste (incl. CHP) |
Less than 200 kWth | Tier 1:
7.6 |
20 | Metering.
Tier 1 applies annually up to the Tier Break, Tier 2 above the Tier Break. The Tier Break is: installed capacity x 1,314 peak load hours, i.e.: kWth x 1,314 |
| Tier 2:
1.9 |
|||||
| Medium biomass | 200 kWth and above; less than 1000 kWth | Tier 1: 4.7 | |||
| Tier 2: 1.9 | |||||
|
Large biomass |
1000 kWth and above | 2.6 | Metering | ||
|
Small ground source |
Ground-source heat pumps; Water-source heat pumps; deep geothermal |
Less than 100 kWth | 4.3 | 20 | Metering |
|
Large ground source |
100 kWth and above | 3 | |||
|
Solar thermal |
Solar thermal | Less than 200 kWth | 8.5 | 20 | Metering |
| Biomethane | Biomethane injection and biogas combustion, except from landfill gas | Biomethane all scales, biogas combustion less than 200 kWth | 6.5 | 20 | Metering |
Domestic consumers can expect to hear about RHI tariff levels later in 2011 and can expect to recieve payments in 2012, qualifiying installations such as solar thermal can be installed right now and be eligible for the RHI when is comes into effect in 2012.
Domestic consumers could be eligible for RHI premium payments from July 2011 to aid in the purchase of renewable heat technologies, the following levels are expected to be announced:
- Solar Thermal - £300/unit
- Air Source Heat Pumps - £850/unit
- Biomass boilers - £950/unit
- Ground Source Heat Pumps - £1250/unit