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renewable heat incentive

The Renewable Heat Incentive (RHI) is the world’s first long-term financial support programme for renewable heat.  The RHI was launched back in November 2011 with a scheme for the commercial sector that provides payments to industry, businesses and public sector organisations.

The residential scheme is planned to commence in spring this year but in the meantime domestic customers can take advantage of the Renewable Heat Premium Package (RHPP).  The RHPP scheme will expire at the end of March and will provide continued support for households until the domestic RHI is introduced.

Under the RHPP scheme, the following renewable technologies are subject to a non-repayable grant which goes towards the cost of the installation.

Solar thermal water heating – £600.

Air source heat pumps – £1300.

Ground source heat pumps – £2300.

Biomass boilers – £2000.

Householders in England, Scotland and Wales can apply but only those who do not heat their homes with natural gas can apply for the heat pump or biomass grants. Please note the grant for solar water heating is available to any householder.

The RHI is designed to provide financial support that encourages individuals, communities and businesses to switch from using expensive fossil fuels for heating to renewable energy such as biomass.

The payments you receive from the scheme will vary depending on the technology you have installed. The payments are guaranteed for 20 years and are as follows:

Solar thermal water heating – 19.2p per kWh.

Air source heat pumps – 7.3p per kWh.

Ground source heat pumps – 18.8p per kWh.

Biomass boilers – 12.2p per kWh.

The commercial RHI has been available for a couple of years and has been providing generous payments to industry, businesses and public sector organisations.

The following is a financial example of the RHI payment scheme for commercial biomass:

A biomass boiler rated at 36 kWth operates for 7 hours per day in winter and 3 hours per day in summer, i.e. 1,825 hours in total over the year. This size of boiler is classified as ‘small biomass’. It therefore receives the tier 1 tariff of 8.6p per kWh for the first 1,314 hours and the tier 2 tariff of 2.2p per kWh for the remaining 511 hours.

*1314 x 36 x £0.086= £4068.14.

*511 x 36 x £0.022= £404.71.

This makes an impressive total of £4472.85 per year for a guaranteed period of 20 years (plus rate of inflation adjustment each year).

Click here to learn more about the financial benefits of renewable energy or call us on 01302 876194 or free phone 07930 337484.

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  • GES Mechanical Ltd
  • 27 Finkle Streetk
  • Bentley
  • Doncaster
  • South Yorks
  • DN5 0RP
  • P: 01302 876194
  • M: 07930 337484
  • E: einfo@ukgreenenergy.co.uk
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