Renewable Heat Incentive
The Renewable Heat Incentive, which is the first of its kind in the world, will encourage the installation of renewable heat equipment such as solar thermal technologies, biomass boilers and heat pumps.
Phase 1 - July 2011
From July 2011, the Renewable Heat Incentive (RHI) tariffs for non-domestic installations in the industrial, business and public sector will be introduced.
There will also be support of around £15 million for households through the RHI Premium Payment from July 2011. In return for the payments, participants will have to provide feedback on how the equipment performs in practice.
Phase 2 - Oct 2012
From October 2012, RHI tariffs for domestic properties will become available at the same time as the introduction of the Green Deal. The Government has confirmed that renewable heat installations installed in homes since 15 July 2009 will get the Renewable Heat Incentive once it comes in, provided they meet the eligibility criteria. They have also confirmed that this will include those who receive support under the RHPP scheme. However, the Government has not yet published its proposals for how the RHI will work in the domestic sector, so we cannot at this stage provide more information on this. In particular we cannot guarantee that those eligible for an RHPP grant will also be eligible for the RHI.
The RHI Premium Payment
From August 2011 up to 25,000 installations will be supported by a 'RHI Premium Payment' to help cover the purchase price. Eligibility criteria for the payments will include:
- a fair spread of technologies across all regions of Great Britain.
- a well insulated home based on its Energy Performance Certificate.
- a focus on properties off the gas grid, where heating fuels such as heating oil are more expensive and have a higher carbon content.
- agreement from the householder to monitor the performance of installations.
The levels of support for RHI premium payments are:
| Technology | Level of support (per unit) |
| Solar thermal | £300 |
| Air source heat pumps | £850 |
| Biomass boilers | £950 |
| Ground source heat pumps | £1250 |
The Energy Saving Trust is administering the Renewable Heat Premium Payment of behalf of the Department for Energy and Climate Change. Find out more how to apply for this funding and further details on eligibility.
Renewable Heat Premium Payments for social housing
As part of the Renewable Heat Premium Payments £3 million has been set aside for social housing providers. A total of £3 million is available to social housing projects in England, Scotland and Wales under the Renewable Heat Premium Payment scheme, which will finance at least 17 renewable heat projects in social housing. The deadline for applications is 15th September 2011.
Bids will be evaluated by a panel of experts on a number of criteria including installed heat capacity, value for money, opportunities for learning and the number of homes not supplied by mains gas. Successful applicants can start installing renewable heat equipment as soon as they receive confirmation of their winning bid in early October.
For more information on the Renewable Heat Premium Payments for social housing providers click here.
RHI tariffs - domestic
RHI payments will start for homes alongside the Green Deal in 2012 to allow for a more whole-house approach to heat production and energy saving. The Department for Energy and Climate Change will consult on the RHI tariffs later in the year.
Those who have taken up the RHI Premium Payment will be eligible for RHI tariffs, as will anyone else who has had eligible equipment installed since July 2009 (exceptions apply if a grant has been received which contributed to the direct costs of an installation).
RHI tariffs - non-domestic
Biomass, ground source, water source, solar thermal and biomethane projects in the non-domestic sector that have been installed since July 2009 in Great Britain will be eligible for RHI payments from July 2011. The payments will be made quarterly over a 20-year period to the owner of the heat installation.
A non-domestic installation is a renewable heat unit in a building which is not used as a domestic premises. This includes office buildings, schools and district heating schemes (e.g. one boiler serving multiple homes).
The support that an installation receives will be fixed and adjusted annually with inflation.
Go to the DECC website for more information on RHI tariffs for non-domestic installations.
Applying for support
Applications for support will need to be made to Ofgem once the scheme is launched and open for business.Once the details of the application procedure have been announced these pages will be updated.
Further information
Find out more at the Department for Energy and Climate Change website.
If you are looking at developing an RHI scheme or want more information about how you could do this we may be able to help. We have experience supporting local authorities and housing associations on a range of schemes including FITs based opportunities. Foe more information about how we may be able to support you, please email localdelivery@est.org.uk
