Renewable Heat Incentive
What is the Renewable Heat Incentive (RHI)?
The RHI is the new, fixed payment scheme from the Government for the renewable heat you generate yourself. It will replace the current Grant with a fixed payment, which will be paid each year for 20 years.
How long will the RHI payments last?
This is still being decided, but at present this is set at the maximum RHI duration of 20 years.
Will this replace the £400 government grant that is available now?
Yes. You can still apply for the £400 grant towards the cost of your installation, however you will need to pay back the £400 in order to receive the much more rewarding RHI scheme payments.
Where does the money come from for the RHI scheme?
The Department of Energy & Climate Change (DECC).
What happens if I get a wood pellet stove now?
You still qualify you for the £400 grant available now, and in April 2011 will be enrolled on to the RHI, should you wish to do so. Your installer will guide you through the process.
When does this happen?
This scheme comes into effect in April 2011 and all wood pellet stoves installed will qualify for the grant. The scheme is still in the planning stages and some details could change before the rollout.
There are three steps to the RHI:
Step One: you install renewable heat systems in your property such as solar thermal panels, heat pumps or a biomass (wood burning) boiler
Step Two: an estimate is made about how much heat your renewable energy systems will produce
Step Three: you get paid a fixed amount based on that estimate
Who is it for?
Broadly speaking, for everyone -for example:
- Households
- Landlords
- Businesses
- Schools
- Hospitals
- Farmers
- Care homes
Tariff level tables
The major benefit of the Renewable Heat Incentive is the generation tariff paid for every kilowatt-hour of energy produced. The level varies depending on the technology and the system size. The proposed tariff levels within the consultation document for the Renewable Heat Incentive are as follows. However, these are not final and may be moved up or down. We won't find out until the response to the consultation is published.
What now?
Contact us for free advice on the scheme and for an estimate of how much you could save.
