The Renewable Heat Incentive

 

The Renewable Heat Incentive (RHI) is the first scheme of its kind designed to make payments to householders, businesses and organizations which generate their own heat using qualifying renewable sources.  The scheme will be introduced in two phases, with the first phase (commencing July 2011) providing long-term tariff support to the non-domestic sector and the second phase (commencing October 2012*) coinciding with the launch of the Green Deal for Homes and providing long term tariff support for the domestic sector.  The Renewable Heat Incentive is structured to meet the costs associated with the running of renewable systems, such as extra electricity used running a Heat Pump, with the majority of applicants expected to receive a net profit, which will reduce the payback period (i.e. the amount of time it takes for the savings in fuel costs to offset the expense of installing the system).

 

Heat outputs are to be metered, and tariff levels for GSHP installations will be as follows:

  • Systems up to 100kW 4.3p/kWh
  • Systems above 100kW 3.0p/kWh

 

Systems installed prior to 15th July 2009 are ineligible under the RHI.  Systems installed after 15th July 2009 are eligible provided they meet the stated criteria.  Payments will be made for heat generation from the official commencement of the scheme only.  As part of the first phase of the RHI, the Government has announced premium payments to be made to owners of qualifying domestic systems in order to subsidise the installation cost of the system.  Further details of these payments have now been released, click here for information.  Tariff levels for phase 2 installations are still to be conmfirmed.

 

Phase 1 Tariff Levels

Technology

Scale

Tariff (pence/kWh)

Tariff Lifetime (years)

 

Small Biomass

Up to 200 kW

T1     7.6

T2     1.9

20

Medium Biomass

200 kW to 1000 kW

T1     4.7

T2     1.9

20

Large Biomass

Above 1000 kW

2.6

20

Small Ground Source

Up to 100 kW

4.3

20

Large Ground Source

100 kW and above

3

20

Solar Thermal

Less than 200 kW

8.5

20

Biomethane

All Scales

6.5

20

 

 

 

Please note, at this stage Air Source Heat Pumps are not a qualifying technology.  Their position in the RHI is currently under review, as concerns regarding their efficiency have been raised.

 

Systems below 45kW must be installed by an MCS accredited installer using MCS accredited plant.  Systems above 45kW do not require MCS accredited plant, as it is deemed that the expertise of the installers and manufacturers of larger systems is sufficient.  Qualifying systems will be metered and will also be subject to on-going obligations in order to continue to qualify for payments.

 

Although GSHP's are capable of cooling as well as heating, only the heating element of a GSHP installation will be supported via the RHI.

For more information, or to discuss a project contact GECCO on (01606) 786746.