The Renewable Heat Incentive (RHI)
If you are installing a renewable heat technology, then you could be eligible to receive payments through this UK government scheme. The scheme is targeted - but not limited to - off-gas households.
RHI cash payments are made quarterly over seven years. The amount you receive will depend on a number of factors - including the technology you install, the latest tariffs available for each technology and - in some cases - metering.
You can estimate how much money you could earn through RHI using the The Government’s RHI payment calculator.
How do you apply for RHI?
You can apply for RHI via Ofgem's website. This provides all the relevant information to hand and your application does not require a manual review.
If you are unable to apply online then you can contact Ofgem via their Domestic RHI Applicant Support Centre on 0300 003 0744 Monday to Friday from 09:00 to 17:00 or by emailing: DomesticRHI@ofgem.gov.uk.
Support after the RHI
The domestic RHI is due to close to new entrants in March 2022, but this won't affect any RHI agreements already confirmed.
The government is still consulting on the level of support after this time, however the current proposal is a fixed £4,000 up-front 'Clean Heat Grant'. This can support installations of heat pumps or biomass systems where heat pumps are unsuitable. Solar thermal is currently excluded.
Different to the RHI, this grant is paid as a voucher at the point of installation and the amount is the same for every installation, regardless of type or size. But, these details could change as the consultation process is ongoing.
One of our blogs looks at the differences between the two schemes, read it here.
The Smart Export Guarantee (SEG) - January 2020!
The Department for Business, Energy and Industrial Strategy have introduced SEG in place of the Feed-In-Tariff which closed in April 2019. This guarantee pays households for any excess renewable electricity they generate but do not use themselves.
Medium to large energy suppliers have to provide at least one export tariff to its domestic customers. However, smaller energy suppliers such as Social Energy provide payment for exporting solar energy. The exported power must be metered, with a meter capable of reporting exports on half hourly basis. You can visit the Solar Trade website to see the current deals avaliable.
Eligilbity for SEG:
For the resident to receive payments for their exports from the supplier providing the SEG tariff then they must meet the eligibility criteria, these are as follows:
- Technology used: Solar photovoltaics, onshore wind, mCHP, hydro and AD. These systems are required to have a capacity limit of 5MW and must be MCS equipment installed by MCS-certified installer.
- Metered export volumes: Electricity exported must be metered using a meter capable of metering half-hourly export volumes and will need an MPAN.
- There will not be an eligibility requirement based around a particular EPC area.
Resident should be aware that if they are currently in receipt of government support through the FiT scheme for existing systems then they will be ineligible for the SEG for said systems.
It should be noted that if a resident has an old/existing installation in place that receives FiT payments and then invests in a new eligible installation, they could receive SEG payments for this new eligible installation because it is separate to the old/existing system and this new system is not in receipt of FiT payments.
Residents in receipt of RHI payments for technology such as solar thermal systems air/ground source heat pumps will not prevent an installation of technology such as solar voltaic and wind turbines from registering for the SEG and receiving SEG payments.
Residents that utilise storage devices can store their electricity from on-site generation (‘green electricity’) and can sell back when demand is higher to their supplier, generators can also do this with electricity from the grid (‘brown electricity’).
For more information, please visit our news atricle: Out with the Feed in Tariff, in with the Smart Export Guarantee, or Energy Saving Trust website.
For More Information
For more information contact Action Surrey on 0800 783 2503 or email firstname.lastname@example.org.
Alternatively, fill out our enquiry form online to obtain a survey and no-obligation quote.