The Renewable Heat Incentive (RHI) is a new Government environmental programme designed to increase the uptake of renewable heat technologies by providing incentive payments to eligible generators of renewable heat for commercial and industrial sectors.
This will contribute towards the Government's target (as set under the 2009 EU Renewable Energy Directive ) of 15% of total UK energy consumption being generated from renewable sources by 2020.
The Government is honouring the previous commitment that installations installed and first commissioned on or after the 15th July 2009 will be eligible for support once support is introduced, providing they meet the final eligibility criteria.
Currently only boilers are included in the scheme and the size kWth will determine the Tier bracket.
The following table shows current tariff levels for each of the supported technologies. Each year tariffs are adjusted for inflation in line with the Retail Prices Index.
The RHI provides financial support for renewable heat technologies for the lifetime of the installation (to a maximum of 20 years). They make payments on a quarterly basis. Once you are accredited under the RHI, a tariff level will be assigned to your installation based on its technology (e.g. biomass, heat pump, solar) and size and payments will be made based upon the actual heat output of the system.
Payments begin to accrue from the date of accreditation of the installation. The date is confirmed in the accreditation confirmation leter emailed to successful applicants.
You are paid a certain amount per kilowatt hour (kWhth).
For a simple system: This is calculated by multiplying the appropriate tariff by the amount of eligible heat generated in the relevant quarterly period. The formula is:
Payment = Tariff level x Heat generated by RHI installation.
For a complex system: Once you have entered the meter readings and have the three heat data figures required the IT system on the RHI Register will calculate and display the 'Eligible Heat Output' (EHO) figure in kWhth. This is the amount that will be multiplied by your tariff to determine the payment amount..
The formula to determine how many kWh have been produced is:
Eligible heat used on system X Heat generated by RHI installation
Total heat generated on system
The Gas and Electricity Markets Authority (Ofgem) is responsible for implementing and administering RHI on behalf of the Government. Their functions include accrediting eligible installations, making payments to participants, monitoring compliance and undertaking inspections to ensure the scheme conditions are adhered to.
For more information visit:
Download a PDF of Ofgem's leaflet The Renewal Heat Incentive