The Renewable Heat Incentive (RHI) is a financial scheme to encourage the installation of renewable heat technologies. The scheme is available for both domestic and non-domestic installations.
Homeowners and landlords are set tariffs for heat generated by solar thermal panels, biomass boilers and heat pumps. Payments will be made on a quarterly basis for seven years.
NEW DOMESTIC RHI TARIFFS
Air Source Heat Pumps (ASHPs)
New Tariff: 10.02p/kWh (Was 7.51p/kWh)
Heat Demand Limit: 20,000kWh
Ground Source Heat Pumps (GSHPs)
New Tariff: 19.55p/kWh (Was 19.33p/kWh)
Heat Demand LimitI:30,000kWh
New Tariff: 6.44p/kWh (Was 4.68p/kWh)
Heat Demand Limit: 25,000kWh
No change for Tariff: 19.74p/kWh
No Heat Demand Limit
Applications can be made from December 2016 at the new rates. Actual increased payments will be made from when the law is changed in 2017.
Although Heat demand limits will be introduced (see figures above), this will not disqualify properties with higher heat demands from applying to the scheme.
All new ASHPs and GSHPs will be required to have electricity metering to qualify to applying for support under the scheme to monitor their heating system. However, payments will continue to be on the basis of the deemed heating requirements of the property (except for second homes and where a renewable heating system is installed alongside another heating system, in which cases payments will continue to be on the basis of heat metering).
Who is eligible?
The scheme is available to homeowners, private and social landlords and third party owners of heating systems. All renewable heat technologies installed since 15 July 2009 and meet the scheme eligibility criteria will be able to join the scheme.
All installations and installers must be MCS certified (or certified by an equivalent scheme).
RHI for non-domestic dwellings provides financial incentives to eligible, non-domestic renewable heat generators for the life of the installations or up to a maximum of 20 years.
Non-domestic sectors include industrial, commercial, public and non-for-profit sectors. A non-domestic installation might be a large-scale industrial heating systems or a smaller community heating project.
NEW NON-DOMESTIC TARIFFS
Biomass: the three current biomass tariff bands will be replaced with a single tariff, which will be subject to tiering. The Tier 1 tariff will be set at 2.91p/kWh and the Tier 2 tariff at 2.05p/kWh. Each plant will have a tier threshold equivalent to a 35% load factor.
Biomass-CHP: there will be no further changes specific to support for biomass-CHP as a result of the March 2016 consultation.
ASHPs: the tariff for ASHPs will remain at 2.57p/kWh. The tariff for GSHPs will remain at 8.95p/kWh for Tier 1 and 2.67p/kWh for Tier 2 with no change to the tier threshold.
GSHPs: those sharing a ground loop will continue to be eligible for support through the non-domestic RHI. However, for domestic properties sharing a ground loop payment will be made on the basis of deemed heat use, as in the domestic scheme. Electricity metering will be required for GSHPs sharing a ground loop where they are installed in domestic properties.
Solar Thermal: systems will remain eligible for support under the scheme at 10.28p/kWh and the capacity limit of 200kW will continue to apply.
Tariff guarantees will be introduced providing investors with greater certainty regarding their tariffs earlier in the project cycle, for:
Large biomass boilers (above 1MW in capacity)
Large biogas plant (above 600kW)
GSHPs (above 100kW, including The Non-Domestic RHI shared ground loop systems with a total installed capacity above 100kW) All capacities of biomethane, biomass-CHP and deep geothermal plant.
Who is eligible?
The scheme is available for installations completed and first commissioned on or after 15th July 2009, installations where no grants from public funding have been or will be received for purchasing or fitting the eligible installation and for technologies that MCS accredited and fitted by an MCS approved contractor.
Please read the specific criteria and see if you are eligible.
How do I get involved?