The Renewable Heat Incentive
The Renewable Heat Incentive (RHI) is the world’s first long-term financial support programme for renewable heat.
The RHI pays participants of the scheme that generate and use renewable energy to heat their buildings. By increasing the generation of heat from renewable energy sources (instead of fossil fuels), the RHI helps the UK reduce greenhouse gas emissions and meet targets for reducing the effects of climate change.
There are two parts to the RHI:
- Domestic RHI – launched 9 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
The domestic RHI scheme
The domestic RHI scheme opened on 9 April 2014.
It is a financial incentive scheme designed to encourage the uptake of renewable heating measures among domestic consumers. The domestic RHI is targeted at, but not limited to, homes off the gas grid. Those without mains gas have the most potential to save on fuel bills and decrease carbon emissions.
As of 1st July 2015 the domestic payments are 7.14p per kilowatt generated. These payments can be claimed for 7 years from the date of commissioning a new eligible measure. ie. Biomass boiler, heat pumps or solar thermal and will often have paid a significant portion of the installation costs over that time.
All qualifying installations must have been installed by an MCS (Microgeneration Certification Scheme) accredited installer. If the conditions are met, you can even claim for installations that have been installed as far back as 2009.
The scheme will cover single domestic dwellings and will be open to homeowners, private landlords, social landlords and self-builders. It will not be open to new build properties other than self-build.
The non-domestic RHI scheme
The non-domestic RHI scheme has been open to commercial, industrial, public sector, not for profit and heat networks since November 2011. The scheme is designed to bridge the gap between the cost of fossil fuel heat installations and renewable heat alternatives through financial support for owners.
The payments that can be received under this scheme can be considerable. The current rates, since 1st July 2015, are up to 5.18p per kilowatt generated and is received for the next 20 years. The rate depends on the annual amount of metered heat generated.
'The Early Bird Catches the Worm'
The Government has built in a mechanism to reduce the payment rates as the take up of renewables increases and so the rates are adjusted down every quarter. However this only affects new applications as the rate that is applicable at the time you start receiving RHI payments is the rate that you will receive for the duration of the payments.
So the sooner you get on board the higher the payments will be. Don't wait, contact us today to get more information and start the process.