What is the RHI Scheme?
The Renewable Heat Incentive (RHI) is a Government-funded scheme administered by Ofgem. It aims to encourage an increase in the proportion of heat generated by renewable technologies by offering fixed, index-linked regular payments to companies and organisations generating and using heat produced by renewable energy.
Save money, make money
Renewable energy is an effective way to lower carbon emissions and reduce fossil fuel usage but it also offers generous financial benefits to those who choose to use it. By switching to renewable heat sources, commercial and domestic customers can receive substantial cash payments as part of the Renewable Heat Incentive.
Announced in 2011, the Renewable Heat Incentive (RHI) is a UK government scheme that aims to encourage the uptake of renewable heat technologies among home owners, communities and businesses. The heat produced in our homes, businesses and public buildings is responsible for around half of the UK’s energy consumption and accounts for a large proportion of the country’s carbon emissions. Switching from fossil fuels to sustainable heat sources will reduce the impact of our energy production on the environment.
The government expects the Renewable Heat Incentive to make a large contribution towards the targets set for the reduction of carbon emissions by 2020.
How does the RHI Scheme work?
The RHI applies to a selection of renewable heating sources available in the UK. These include:
- Biomass boilers and stoves
- Air source heat pumps
- Ground source heat pumps
- Solar thermal panels
To receive financial payback, installations must meet certain eligibility requirements set out by the government. For eligible installations, payments are made for every kilowatt of renewable energy produced. Not only does this provide users with a source of income, but it helps to offset the costs of installing biomass heating technologies. Commercial or domestic customers who use these renewable sources can make a significant return on their investment of between 20 and 40%.
At present, there are two RHI schemes which each have different tariffs, rules and application processes.
Non Domestic RHI
The Non-Domestic RHI scheme was the first to be introduced and is available for commercial, public & industrial premises. This includes small & large businesses, hospitals, schools, charities and not-for-profit organisations. It also includes domestic district heating schemes where more than one property is heated by a single biomass boiler.
The RHI for the non-domestic sector provides quarterly payments for 20 years to eligible renewable heat generators.
Visit Ofgem to Find Out More
The domestic RHI scheme was launched in April 2014 to cover domestic renewable heating installations in the UK. This includes single domestic properties that are heated by a biomass boiler up to a maximum of 45kW. The scheme is open to any household who can meet the eligibility requirements set out by the government.
Domestic customers with renewable heating installations will earn quarterly payments which are made over a seven-year period.
Visit Ofgem to Find Out More
Renewable Heat Incentive, Prices & Tariffs
Current tariff rates offered by the RHI are very attractive in order to reward early adopters and to encourage the uptake of renewable energy by large industries and commercial enterprises. Prices vary depending on whether the application is domestic or commercial and depend on the size of the technology, but domestic installations can receive payments of between 5.14p and 19.51p per kWh from January 2016. See the tariff table below for more information.
- Small Commercial Biomass
- Medium Commercial Biomass
- Large Commercial Biomass
- Small Commercial Heat Pumps
- Large Commercial Heat Pumps
- Solar Collectors
You can find out more information on the Renewable Heat Incentive by visiting the websites below:
If you’d like to earn money from the energy you produce, give D&J Franks Renewables a call to discuss your options.
Call us on 0800 1244 440
Contact us to find out how Renewable heating can benefit you.
Aycliffe Business Park
+44 (0)800 1244 440
D&J Franks Renewables have been providing heating solutions for over 40 years for both commercial and domestic clients across the North East and across the UK.
We provide a complete service for biomass and heat pump renewable heating, from design, installation and servicing, to technical consultancy for new developments and district heating schemes.