The Renewable Heat Incentive

The Renewable Heat Incentive (RHI) is a government programme similar to the Feed in Tariff, designed to promote the installation of renewable heating systems, such as heat pumps, biomass and solar thermal panels.

How the scheme works

If you replace your existing fossil fuel heating system (e.g. gas, oil or coal) with a renewable technology (e.g. wood fuel) you could get paid a set amount each year as an incentive for you to reduce your CO2 emissions and help prevent climate change. The Government are not proposing to measure the heat generated from installations. Instead, an estimated figure will be used to work out payments.

Phase 1 of the RHI, for non-domestic installations in the industrial, business and public sector was launched in November 2011.

Phase 2 of the RHI, for domestic properties was due to be introduced in April 2012 but this has now been delayed until 2013. The Government has confirmed that renewable heat installations installed in homes since 15 July 2009 will qualify for the  Renewable Heat Incentive once it comes in, provided they meet the eligibility criteria.

They have also confirmed that this will include those who receive support under the RHI Premium Payment scheme (see below). However, the Government has not yet published its proposals for how the RHI will work in the domestic sector, so we cannot at this stage provide more information on this.

Eligible technologies

• Air, water and ground-source heat pumps
• Solar thermal
• Biomass boilers
• Renewable combined heat and power
• Use of biogas and bioliquids
• Injection of biomethane into the natural gas grid.

For further information on the RHI  please contact Ardenham Energy on  0800 369 8986.

From August 2011 up to 25,000 installations will be supported by a ‘RHI Premium Payment’ to help cover the purchase price.

Eligibility criteria for the payments will include:

• a fair spread of technologies across all regions of Great Britain.
• a well insulated home based on its Energy Performance Certificate.
• a focus on properties off the gas grid, where heating fuels such as heating oil are more expensive and have a higher carbon content.
• agreement from the householder to monitor the performance of installations.

The levels of support for RHI premium payments are:

For further information on either the RHI or the RHI Premium payment, please contact Ardenham Energy on 0800 369 8986.