Renewable Heat Incentive (RHI)

The Renewable Heat Incentive (RHI) announced in March 2011, is aimed at encouraging people to install renewable heating technologies and is  the first financial support scheme for renewable heat in the world.

The scheme is being introduced in two phases:

In the first phase long term tarrif support is focussed on the non-domestic sector (industrial, buiness and public sector) as it accounts for 38% of the UK's emissions.  But for the domestic sector a one off incentive has been put in place, the Renewable Heat Premium Payment (RHPP) to provide householders with financial support to install renewable heating technology.

The second phase will see the scheme expanded to include addtional technologies as well as long term support for house holders. Full details and timings are to be confirmed early in 2012 but phase two is expected to commence with the forthcoming Green Deal in 2012.

Phase 1 - Non-Domestic

This phase of the scheme opened for applications on November 28,  2011 and initially will support only technologies listed within the EU Renewable Energy Directive, as listed below:

• solid biomass and solid biomass contained in municipal waste (including CHP),
  
• ground and water source heat pumps,
  
• geothermal (including CHP),
  
• solar thermal (at capacities of less than 200 kWth),
  
• biogas combustion (except from landfill gas but including CHP; at capacities of less than 200 kWth) biomethane injection.

Note: Air source heat pumps are not curently supported.

Participants also need to meet several other eligibility requirements which are explained in the Guidance document. These include demonstrating that the heat is used for an eligible purpose, that metering arrangements are appropriate, and that grants have not been received for certain purposes.

The tariffs will be paid for 20 years to eligible technologies that have been installed since 15th July 2009 with payments being made for each kWh of renewable heat which is produced. Once in the scheme the level of support an installation will receive is fixed and adjusted annually with inflation. However, as with the feed-in tariffs, it is expected that the levels of support available for new entrants to the RHI scheme will decrease over time as the costs of the equipment and installation reduce through economies of scale. £860m of funding has been allocated for the first 4 yearsof the scheme.

Current tariff rates for Dimplex eligible technologies:

Ground Source Heat Pumps  

• 4.3p/kWh for systems up to 100kW
• 3p/kWh for systems over 100kW

Solar Thermal Systems

• 8.5p/kWh
  

For more information regarding the RHI visit the DECC website.