Renewable Heat Incentive (RHI)

The Renewable Heat Incentive was introduced in April 2010. The Feed-In Tariffs have done more than anything else to accelerate the installation of renewable energy capacity in the UK and also in Europe. After a number of campaigns the founders of the Renewable Heat Incentive achieved success and in June 2011 the Renewable Heat Incentive will come into action and will become available across the United Kingdom.

How is RHI generated?

Almost all properties in the UK generate their own heat from a gas or oil boiler, there is no ‘National Grid for Heat’ so importing and exporting heat is to be paid for by the Treasury not by the energy users.

Three key steps to Renewable Heat Incentive (RHI):

Step One: The installation of renewable heat systems in your property. These may include solar thermal panels, heat pumps or a biomass (wood burning) boiler.

Step Two:
The amount of estimated heat that your property will produce is then calculated.

Step Three: Once this has been calculated, you will then receive a fixed payment amount based on the estimation figures.

Who is the RHI for?

The Renewable Heat Incentive is basically available to everybody including households, landlords, businesses, farmers, schools, hospitals, care homes and more. There is even a possibility that RHI can be used by entire communities, to invest in a renewable scheme from which they will all use the heat and share the income, this could apply to places such as local community centres and youth clubs.

If you install a qualifying renewable heat system, you are eligible to claim the RHI

This information is based on the original consultation document published in February 2010.

The Renewable Heat Incentive (RHI) Review

In October 2010, within the Spending Review, the Government announced that the RHI would be reduced in scope by 20% as it will now be paid for by the Treasury rather than through a levy on energy bills as was originally planned. This will have an impact on the information, such as rates and Government's response to the consultation is awaited before confirmation can be given on how the scheme will have changed.
There is no upper limit to the size of heat equipment eligible under the Renewable Heat Incentive. This differs to the Feed-In Tariffs where a 5MW ceiling has been applied.

Who can claim the Tariffs?

Anyone who has installed a renewable energy system producing heat after July 15th 2009 is eligible to claim the Renewable Heat Incentive. Virtually every property in England, Scotland and Wales is eligible.

Do the Tariffs cover electricity?

The RHI does not cover electricity but is to be covered by the Feed-In Tariffs, which works alongside the RHI.
Unlike the Renewable Heat Incentive, the Feed-In Tariffs are in place in approximately 40 other countries in comparison to the Renewable Heat Incentive which is a World First.

3. Applying for the Renewable Heat Incentive

The RHI is not live as of yet, but will launch in June 2011. However, you can get started now on installing RHI systems. Any eligible system installed now will be able to start receiving payments as soon as the RHI launches - and in the meantime you'll still be saving money on heating bills, therefore the earlier you have it installed the better it will be for you. Once the RHI is launched, most installers will able to assist with registering your system.

A review of the Renewable Heat Incentive resulted in a number of modifications being put into place effective from March 2016, in order to fine tune the scheme. These include new applicants no longer being required to provide a Green Deal Advice Report (GDAR), and new applicants with self-build properties being exempt from the 183 days occupancy declaration. A comprehensive list of clarifications and adjustments are available on the Energy Saving Trust website.

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