Renewable Heat Incentive

Summary points on RHI:

  • This government scheme will see tariffs paid to homeowners and commercial (non-domestic) entities who convert to renewable heating, or have done so since July 2009.
  • The non-domestic scheme has already been launched and details can be found on the DECC website. The tariffs are outlined in the table below.
  • The scheme for homeowners is still to be finalised and will be launched in Autumn 2012 alongside another scheme – the Green Deal for Homes (an insulation and energy efficiency programme).
  • Ahead of domestic RHI, the government have introduced Renewable Heat Premium Payments for the domestic sector. These will see some homeowners who move to biomass heating in the near future receiving a one of payment of £950.
  • Installations that have taken place since 15th July 2009 will be eligible for RHI but as yet, details of the domestic tariffs and eligibility criteria are unknown.
  • All installations require to have been undertaken by MCS accredited installers and for systems of 45kW or less, the equipment also have to be MCS accredited.
  • Pentland Biomass are accredited installers as are our Ponast, Catfire and Angus boilers.

Background to Renewable Heat Incentive

Increasing renewable heat is key to the UK meeting its renewable energy targets, reducing carbon emissions, ensuring energy security and helping to build a low carbon economy. The Renewable Heat Incentive (RHI) will help accelerate deployment by providing a financial incentive to install renewable heating in place of fossil fuels.

The Government will take a phased approach to implementing the RHI. Initially, in the first phase, long-term tariff support is targeted at the big emitters in the non-domestic sector.

This sector, which covers everything from large-scale industrial heating to small business and community heating projects, will provide the vast majority of the renewable heat needed to meet our targets and represents the most cost-effective way of increasing the level of renewable heat. The Government therefore wants to provide support now in order to kick-start take-up in this sector.

A second phase of RHI support including long-term tariff support for the domestic sector will then be introduced in 2012 to coincide with the introduction of the Green Deal for Homes. People in receipt of the Renewable Heat Premium Payments will be able to receive long term RHI tariff support once these tariffs are introduced.

To identify the type of returns that your business can expect, you can visit The Biomass Energy Centre Calculator (BEC RHI Calculator).