What is the Renewable Heat Incentive? (RHI)
In March 2011, the UK Government announced the details of the Renewable Heat Incentive (RHI), which is the first of its kind in the world. The Incentive is designed to provide financial support that encourages individuals, communities and businesses to switch from using fossil fuel for heating to renewables.
There are two phases to the introduction of the RHI:
- Phase 1 introduced the Renewable Heat Premium Payments (RHPP) scheme to households and also introduced the RHI for non-domestic installations in the industrial, business and public sectors.
- Phase 2, with the domestic element of the RHI, is expected to be introduced in mid 2013 around the same time as the UK Government’s Green Deal. Anybody who has installed an eligible technology since 15th July 2009 will be eligible for the RHI.
|Tariff Name||Eligible Technology||Eligible Sizes||
Tariff Rate(pence per kWh)
|Tariff Duration||Support Calculation|
Small Commercial Biomass
Medium Commercial Biomass
Large Commercial Biomass
|Solid Biomass including sold biomass contained in municipal solid waste and CHP||
Less than 200kWth
200kWth & above; less than 1000kWth
1000kWth or above
Tier 1: 7.9
Tier 2: 2.0
Tier 1: 4.9
Tier 2: 2.0
Tier 1 applies annually up to the Tier break.
Tier 2 above the Tier break is:
installed capacity x 1,314 peak load hours,
i.e. kWth X 1,314
Small Commercial Heat Pumps
Large Commercial Heat Pumps
|Groud source heat pumps; Water source heat pumps; deep geothermal||
Less than 100kWth
100kWth and above
|Solar Collectors||Solar Collectors||Less than 200kWth||8.5||20||Metering|
Renewable Heat Premium Payment
The Renewable Heat Premium Payment scheme has now been announced and is open for you to make an application. There is around £12m available to householders in Scotland, England and Wales who install appropriate-sized systems after 1st August 2011.
Renewable Heat Incentive
People in receipt of the Renewable Heat Premium Payments will be able to apply for the full RHI tariff support once the scheme is introduced in Autumn 2012, as will anybody who has installed an eligible technology since 15th July 2009.
However, the Government has not yet published its proposals for how the Renewable Heat Incentive will work in the domestic sector, so there is no guarantee at this stage that anyone who is eligible for a Renewable Heat Premium Payment grant will also be eligible for the Renewable Heat Incentive.
Although air source heat pumps will be eligible for the Renewable Premium Payment, a decision on whether or not they'll be included in the payments will be based on consumer feedback on the performance of the technologies. This should be clarified in the government’s RHI proposals, expected late 2012.