To encourage the uptake of renewable energy in homes and business across the UK, the british Government created financial incentives – the Feed in Tariff (FIT) and the Renewable Heat Incentive (RHI).
Below are brief explanations of the RHI and FIT tariffs and the financial incentive schemes as a whole. For more comprehensive information including eligibility visit our library where you can find fact sheets.
The Renewable Heat Incentive (RHI) is a Government environmental programme that provides financial incentives to increase the uptake of renewable heat. For the non-domestic sector, broadly speaking, it provides a subsidy which is payable for 20 years to eligible non-domestic renewable heat generators and producers of biome thane for injection based in Great Britain.
Ofgem is responsible for implementing and administering the scheme on behalf of the Department of Energy and Climate Change (DECC).
By providing a long-term financial incentive, the objective of the non-domestic RHI is to significantly increase the proportion of heat generated from renewable sources. By driving change in a sector currently dominated by fossil fuel technologies, the RHI can help the UK meet EU targets to reduce carbon emissions and improve energy security.
For more information of the RHI scheme including eligibility, visit our library.
The RHI has two schemes – Domestic and Non-Domestic. They have separate tariffs, eligibility conditions, rules and application processes. Ofgem administer both. The domestic scheme’s tariff sees members receive quarterly payments for seven years for the amount of clean, green renewable heat their system produces.
You can only apply for one of the schemes, to find out which you could benefit from you can contact us for more information based on your needs or visit our library to view Ofgem fact sheets on the scheme.
Any biomass or biogas contractor can install a non-domestic RHI approved system, there is no official certification needed. However, it is important that you ensure your contractor understands all of the regulations involved – Always ask an installer if their installations have been approved for the RHI payment scheme.
At Shaw Renewables we ensure that the products we install conform to RHI rules and standards, and provide all the paperwork that ofgem need from an installer, allowing your application to go through the system as smoothly as possible.
If you are applying for the domestic RHI tariff, your installer must be MCS accredited.
RHI and FIT
The Feed-in Tariff (FIT) scheme is a government programme designed to promote the uptake of a range of small-scale renewable and low-carbon electricity generation technologies.
The FIT scheme is available through licensed electricity suppliers. It requires some of them to make tariff payments on both generation and export of renewable and low carbon electricity. Generation and export tariff rates are index-linked which means that they will increase or decrease with inflation.
The Anaerobic digestion FIT tariff has seen the introduction of deployment caps – each quarter, a cap of 5MW will be in place. To find out more about the caps click here to visit the ofgem website.
For more information on the FIT scheme including eligibility, visit our library.