In March 2011, the UK Government announced the details of their Renewable Heat Incentive (RHI).
RHI is designed to provide financial support that encourages individuals, communities and businesses to switch from using fossil fuel for heating, to renewables such as wood fuel.
There will be two phases for domestic customers:
Phase 1 (available from July 2011) - “RHI Premium Payment”
This is called the “RHI Premium Payment” and will be worth around £15m and available to 25,000 householders in Great Britain who install from July 2011.
The exact amounts available to consumers have yet to be confirmed. However the Department of Energy and Climate Change (DECC) have announced that the following amounts may be available:
- Solar Thermal - £300/unit
- Air Source Heat Pumps - £850/unit
- Biomass boilers - £950/unit
- Ground Source Heat Pumps - £1,250/unit.
These are one off payments; so not annual. DECC plan to publish details of the “RHI Premium Payment” and how this will apply in May this year though recipients of this payment will need to ensure that:
- They have a well-insulated home based on its energy performance certificate;
- They agree to give feedback on how the equipment performs.
Further guidance, including how to apply will appear here in May.
Phase 2 (available from October 2012) – RHI tariffs
People in receipt of the Renewable Heat Premium Payments will be able to receive long term RHI tariff support once these tariffs are introduced, as will anybody who has installed an eligible technology since 15th July 2009.
Whilst Air source heat pumps will be eligible for the Renewable Premium Payment, a decision on whether or not they'll be included in the tariff payments will be based upon consumer feedback on the performance of the technologies. This should be clarified towards the end of 2011.
These tariff payments will start alongside the Green Deal from October 2012 to allow a more whole-house approach to heat production and energy saving.
Full details are available on DECC’s web site.
Last updated May 2011.
