Optimum Heating

What is the Renewable Heat Incentive?

The Renewable Heat Incentive (RHI) is a new Government scheme which is planned to be introduced in the UK in April 2011 to encourage people to generate heat from renewable sources, by offering financial support. Not only will you be paid for the heat you generate, but you will also reduce your energy bills, protect yourself from future energy price rises, as well as reducing your carbon footprint.

1. 1.

   How do I generate heat from a renewable source?

   The main methods of generating heat from a renewable sources are Biomass boilers, solar thermal panels, air-source and ground-source heat pumps.

2. 2.

   Who can benefit from the RHI?

   The scheme is open to everyone in England, Scotland and Wales, including homeowners, tenants, businesses, schools and farms. You will be able to claim the tariff from July 2011, which is the planned launch date of the RHI. In addition, anyone who installed a suitable system after July 15th 2009 will be able to claim the Renewable Heat Incentive when it goes live. For small and medium sized installations ie under 45kw, both installers and equipment must be certified under the Microgeneration Certification Scheme (MCS).

3. 3.

   Latest RHI News - 20th October 2010:

   The Government have confirmed as part of their comprehensive spending review that Renewable Heat Incentives will go ahead as planned from June 2011. The exact details of the scheme including the rates and the lifetime of payments are still provisional and are subject to the Government's response to this year's consultation. Either way, Renewable Heat Incentives will make installing a Biomass Boiler or a Solar Hot Water system a worthwhile investment.

4. 4.

   How much will I get from the RHI payments?

   From 1st June 2011, payments will be made by the Government for every unit of heat generated by a Biomass or solar thermal system. These Renewable Heat Incentives are far more rewarding than the small amount of grant funding which ceased in May 2010. A suitable system fitted now by one of our approved installers will qualify for the RHI.

   • Payments will be guaranteed and made over the life of the equipment (see below) and will be linked to inflation. Payments will be distributed annually for installations below 45 kW and quarterly for those above this level. All payments will require evidence to support continued operation and maintenance of the equipment. Tariff levels are proposed to provide a rate of return of 12% on the additional capital cost of renewables, with a lower rate of return of 6% given to solar thermal.
   • Payments will be calculated on the deemed annual amount of heat output, in kilowatt hours (kWh). The proposal is for the amount of heat generated at the small to medium scale to be estimated, or deemed, at installation stage (in most cases). This will allow the homeowner to receive a set amount based on the deemed output, and should encourage low energy consumption whilst discouraging waste.
   • The RHI will encourage renewable energy systems to be installed in buildings adopting a basic level of energy efficiency measures in a ëwhole-house approach consisting of:
     
     a) at least 125mm of loft insulation.
     b) cavity wall filled where appropriate.
   • Buildings will be assessed for their ëdeemedí heat demand though the Standard Assessment Procedure (SAP), or similar, which is already in use for energy rating of buildings, based on the assumption that these minimum energy efficiency measures are in place.
   • The renewable heat installation will be the only fixed heating installation in the property.
   • Multiple qualifying technologies such as solar thermal and heat pumps will be included in the scheme.
   • The Government has closed the LCBP to all new applications for grant funding from 24th May 2010.

You must refer to the DECC website to confirm all details before making any decision to proceed as details noted above are only an indication and may vary as the scheme progresses.