Renewable Heat Incentive (RHI)

What is the Renewable Heat Incentive – RHI

Wessex ECOEnergy systems now offer a real alternative to oil, gas and electricity and the UK Government is currently encouraging the take up of these carbon neutral systems that do not contribute to global warming.

The UK has committed to meeting a 15% reduction in greenhouse gas emissions by 2020 and in order to ensure this is achieved the Renewable Heat Incentive (RHI) has been introduced by the Department of Energy and Climate Change (DECC) to incentives businesses and individuals to adopt alternative carbon neutral energy generation systems.

The incentives work by paying you for every kWh of energy you generate using renewable systems.

 

There are two schemes available – Domestic & Non Domestic

The Renewable Heat Incentive has two schemes – Domestic and Non-Domestic. They have separate tariffs, joining conditions, rules and application processes.

The schemes are administered by OFGEM. There are a number of steps to go through to qualify for the RHI payments and the Wessex ECOEnergy team will support you as part of the installation. In order to be eligible for RHI there is a minimum level of energy saving measures that must be in place. The detailed site survey will identify any deficiencies that will need to be rectified / installed to meet the minimum requirement.

 

Current RHI Tariffs

Solar Thermal

Domestic RHI
p/kWh19.51
  • 7 Year Payment Scheme
  • Quarterly Payments
  • Non Metered
  • Adjusted Annually RPI

Biomass

Domestic RHI
p/kWh8.93
  • 7 Year Payment Scheme
  • Quarterly Payments
  • Non Metered
  • Adjusted Annually RPI

Solar Thermal

Non Domestic RHI
p/kWh10.0
  • 20 Years Payment Scheme
  • Quarterly Payments
  • Metered
  • Adjusted Annually RPI

Biomass

Non Domestic RHI
p/kWh5.87
  • 20 Years Payment Scheme
  • Quarterly Payments
  • Metered
  • Adjusted Annually RPI

Domestic RHI Scheme

The Domestic Renewable Heat Incentive (Domestic RHI) is aimed at general households in the UK. Systems that qualify, receive quarterly payments for seven years for the amount of clean, green renewable heat their system produces. The scheme’s open to anyone who can meet the joining requirements. It’s for households both off and on the gas grid and any type of property.

The current payments are adequate to cover the installation costs and are payable for 7 years from the date of commissioning. The result is that the system pays for itself in as little as 6 years and homes will significantly reduce their heating bills for the next twenty years or so.

 

Click Here for the: UK Govt Domestic RHI Payment Calculator

 

Non Domestic RHI Scheme

Generally, if the renewable heating system is in commercial, public or industrial premises, then you would apply to the Non-Domestic RHI. This can include small and large businesses, hospitals, schools, and properties with district heating schemes where one heating system serves multiple homes.

The current payments are substantial and are payable for 20 years from the date of commissioning. The result is that the system pays for itself in as little as 3 years and businesses will yield a net income for the remaining 20 years by adopting a renewable energy led approach.

 

 

Click Here for the: UK Gov RHI Information Site OFGEM

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