Renewable Heat Incentive

The Department of Energy and Climate Change claim that around half (49%) of the energy consumed in the UK is used to produce heat. Therefore it is not surprising that in March 2011 the UK Government introduced a scheme to reduce the effect of heat production on the environment.

The scheme is known as the ‘Renewable Heat Incentive’ (RHI) which provides customers with cash back for the generation of renewable heat. The RHI Scheme encourages users to replace existing fossil fuel heating systems such as oil, coal and gas with one of the supported renewable technologies which currently include;

·        Ground Source Heat Pumps,   

·        Solar Thermal Panels,

·        Biomass Boilers

·        Biomethane. 

The RHI scheme is available in England, Scotland and Wales. It is being introduced in a phased approach. The first phase is targeted at non-domestic customers “the big emitters” which contribute 38% of the UK’s carbon emissions. This sector covers everything from large scale industrial heating to small business and community heating projects. Application for non-domestic RHI opened on 28^th November 2011. If you have recently installed one of the above technologies or are thinking of doing so; you can apply now @ https://rhi.ofgem.gov.uk/.

                                                 

The second phase will be available to domestic properties. It was supposed to be launched in October 2012 but the unexpected delay in the launch of phase 1 has led to a review of the launch date of phase 2. Until phase 2 is launched householders can apply for a Renewable Heat Premium Payment.  This is a Government grant to help pay for renewable technologies. 

Any householder installing a solar thermal system in England, Scotland or Wales can apply for a Premium Payment.  However, those wishing to install a biomass boiler, or a ground source or air source heat pump, are only eligible for a Premium Payment if they are living in an area that is not connected to the gas grid and are therefore using alternative heating sources such as oil, LPG, solid fuel or electricity. The amount of money available depends on the technology chosen as per the table below;