THE RENEWABLE HEAT INCENTIVE

What is it and how can it benefit me?

The Renewable Heat Incentive (RHI) is the world’s first long-term financial support programme for renewable heat.

The Government scheme provides financial support to renewable heat generators and producers of biomethane.

The big push…

The RHI was launched in November 2011 with the aim to encourage the uptake of renewable heating systems in the UK.

Decreasing Britain’s dependency on fossil fuels will help to:

  • ensure the UK has a secure supply of energy
  • reduce greenhouse gas emissions to slow down climate change
  • stimulate investment in new jobs and businesses

As well as achieving the long term goal of slowing down climate change,  there a short term goal; The UK has adopted an EU target to supply 15% of energy (heat, electricity and transport) from renewables by 2020. Failure to do so will result in fines.

As heating accounts for almost 50% of the United Kingdom’s energy consumption and associated carbon dioxide emissions, the RHI is a gigantic push in the right direction to meet the EU targets.

Eligibility…

The RHI is for all commercial and domestic heat users. The eligible technologies are:

    • Biomass

 

  • Heat pumps
  • Solar Collectors
  • Biomethane and biogas combustion

The technology installed must be approved by MCS (Microgeneration Certification Scheme) and for domestic installations the engineer who fitted the system must be accredited by MCS.

For more information, including the criteria for domestic and commercial applications visit:

Payments…

Payments are made on a quarterly basis, domestic applicants receive these payments for 7 years and commercial applicants receive them for 20 years.

The amount you receive is based on tariffs. There are two tariffs, one for commercial systems and the other for domestic systems.

You can find current tariffs here and here.

Since the introduction of the RHI in November 2011 over 93% of all accredited commercial installations have been biomass boiler systems – that’s 4,518 businesses receiving RHI payments because of biomass!

Since the introduction of the Domestic RHI in April 2014 over 511 homeowners have been receiving RHI payments because of their biomass systems.

In just 2 years the UK’s dependency on fossil fuels for transport, electricity and heat has fallen by 1.4%, and the use of low-carbon alternatives increased from 11.9% in 2011 to 12.9% in 2013.

Although 1% seems dwarfed by the 15% target, the renewable energy industry is still in it’s infancy and will grow rapidly over the next few years, allowing the demands for more cost effective heating solutions to be met.

For more information visit www.shawrenewables.co.uk or call our office on 0151 424 1433