The Renewable Heat Incentive
On 10th March, DECC released details of the Renewable Heat Incentive scheme.
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.
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 will be released in May 2011.
|
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 |
|
Systems below 45kW must be installed by and 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.

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