Renewable Heat Incentive (RHI)
On March 10th 2011 the Government announced details of the Renewable Heat Incentive, the first financial support scheme of its kind for Renewable heat in the world. The Renewable Heat Incentive is hoped to increase the number of installations of different heat technologies in the UK, and will include solar hot water. It is hoped for the Incentive to be approved by Parliament this summer (2011) and will be introduced shortly afterwards.
Final details are yet to be confirmed however it is suggested the incentive will be introduced in two phases which are highlighted below:
Phase 1- Renewable Heat Premium Payments (Available 30th September 2011)
The initial phase of the Renewable Heat Incentive will focus on the non-domestic sector; however up to 25,000 homeowners will be able to take advantage of £15million which will be dedicated for the Renewable Heat Premium Payments.
This will be a one off payment which the homeowner will be able to use to assist with financing the installation of the renewable technology.
Below are the expected premium payment, however are subject to alteration.
- Solar Hot Water - £300/unit
- Air Source Heat Pumps - £850/unit
- Biomass boilers - £950/unit
- Ground Source Heat Pumps - £1,250/unit
In order to qualify for the payment the properties energy efficiency will firstly be assessed. It is proposed this will be done by viewing the properties energy performance certificate, ensuring the property is fully insulated along with other criteria. In addition, all homeowners who receive the Renewable Heat Premium Payments will also be required to agree that their technology will be monitored enabling a better understanding of the different technologies.
The application process for the premium payment will be announced by Ofgem E-serve (who will administer the Renewable Heat Incentive) once the incentive has been approved by parliament.
Phase 2- Renewable Heat Incentive Tariff
This tariff will be introduced in Autumn 2012 and will replace the Renewable Heat Premium Payments. The Renewable Heat Tariff will pay homeowners for each kWh of heat which is produced by the renewable technology.
Homeowners who installed an eligible technology that generates renewable heat after July 2009 will be eligible for this reward scheme, regardless of whether they also received a Renewable Heat Premium Payment. The tariff will only by available to homeowners whose renewable technology was installed by a tradesperson who is accredited with the Governments Microgeneration Certification Scheme (MCS).
Please follow the link on the below for the proposed table of tariffs. It is planned the following systems will be eligible to receive the Renewable Heat Incentive Tariff and Renewable Heat Premium Payments:
· Solid Biomass
· Bioliquids
· Biogas on-site combustion
· Ground source heat pumps
· Solar hot water
It should be noted that although Air Source Heat Pumps will be eligible for the Renewable Heat Incentive Premium Payment a decision to whether the technology will be included in the Renewable Heat Incentive Tariff has not been made. For more information on the eligibility of Air Source Heat Pumps please click here.
Finalised details of the Renewable Heat Incentive will be available in late summer 2011.
Updated: July 2011
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