The first phase of the Renewable Heat Incentive (RHI) is due to be launched at the end of November 2011 for the non-residential sector, and Autumn 2012 for the domestic side. This initiative has been designed by the UK Government to help people save money on their energy bills and reduce their carbon footprint.
Why a Renewable Heat Incentive?
This scheme it part of a Government drive to reduce the UK’s carbon emissions – making the country a more environmentally friendly place to live. The ambition is to increase all UK heating generation from renewable energy sources from one per cent to 12 per cent by the year 2020.
What is a renewable heat system?
A renewable heat system is any type of device which allows a property to generate central heating and water heating from a renewable source of energy like the sun or air.
Who is the Renewable Heat Incentive for?
- In theory the Renewable Heat Incentive is open to everyone. This is because it aims to support all levels of renewable heat generation from domestic to commercial scales. Therefore anyone is eligible, including households, landlords, businesses, farmers, schools and hospitals.
- To claim the Renewable Heat Incentive you must have installed an operating renewable heat system on your property after July 15, 2009.
Renewable heat systems covered by the scheme include:
- Heat pumps (water source and ground source)
- Biomass heat generation and CHP
- Solar thermal
- Biomass injection
Benefiting from the Renewable Heat Incentive
- Under the scheme applicants will receive a payment based on a tariff which is dependent on the amount of heat a system produces.
- As well as receiving payments applicants will be able to benefit from reduced energy costs as you will be spending less on gas and electricity bills.
- You will also benefit from reduced carbon emissions.
How long will a tariff last?
All tariffs will run for 20 years.
The RHI Premium Payment
From 1 August 2011 until the end of March 2012, up to 25,000 installations will be supported by a new ‘RHI Premium Payment’ to help people cover the purchase price of green heating systems. The RHI Premium Payment will cover technologies across all of Great Britain. The amount for ground source heat pumps is £1250/unit and for air source heat pumps £850/unit.
Those taking up the premium will be eligible for a RHI tariff from Autumn 2012, as will anyone else who has had eligible equipment installed from July 15, 2009.
There will be clear eligibility criteria in order to qualify for a Premium Payment, including:
- A well insulated home based on its energy performance certificate
- Agreeing to give feedback on how the equipment performs
How can I apply?
The Renewable Heat Incentive is due to open for non-residential applications at the end of November 2011 and Autumn 2012 for the residential sector. A forerunner to the incentive, the Renewable Heat Premium Payment (RHPP) was launched on 1 August 2011, and will remain open until March 2012.
It is also worth remembering that any renewable heating system which was installed after July 15, 2009 will be eligible.
Please note – The information above is subject to change and will be updated as and when the Department of Energy and Climate Change (DECC) publishes any amendments.