In a nutshell, The Renewable Heat Incentive is a payment system for the generation of heat from renewable energy sources. As with the Feed-in Tariff system, the RHI makes cash payments to owners who install renewable heat generation equipment in domestic and commercial buildings.
By increasing the generation of heat from renewable energy sources (instead of fossil fuels), the RHI helps the UK to reduce greenhouse gas emissions and meet targets for reducing the effects of climate change.
There are two parts to the RHI:
- Domestic RHI – launched 9th April 2014 and open to homeowners, private landlords, social landlords and self-builders.
- Non-domestic RHI – launched in November 2011 to provide payments to industry, businesses and public sector organisations.
Through the RHI, generators of renewable heat for non-domestic buildings can be paid up to 10p/kWhr for hot water and up to 8.8p/kWhr for heat which they generate and use themselves. The RHI tariff depends on which renewable heat systems are used and the scale of generation.
The domestic RHI will the following tariffs:
- Air-source heat pumps 7.3p/kWh
- Ground and water-source heat pumps 18.8p/kWh
- Biomass-only boilers and biomass pellet stoves with integrated boilers 12.2p/kWh
- Solar thermal panels (flat plate and evacuated tube for hot water only) 19.2 p/kWh
As well as the RHI payments, you will also be saving money by eliminating or reducing your need for gas or oil, both of which are becoming increasingly expensive year-on-year.
If you would like to find out more about the RHI and how you can benefit, get in touch.