Renewable Heat Incentive
Increasing renewable heat is essential to the UK in order to reduce carbon emissions & its renewable energy targets, helping build a cleaner low carbon economy.
The RHI scheme was introduced by the government to help significantly increase the proportion heat that is generated from renewable energy sources.
It is intended to encourage a switch from fossil fuels by compensating for the higher cost of renewable energy arising from the technologies involved. Therefore making renewable energy not only a cleaner option but an affordable one too.
To be eligible to claim RHI
- Equipment must be a new installation
- First commissioned on or after 15th July 2009
- Generating eligible heat
- Have metered output
The RHI will only accept claims supporting “useful” heat. This is identified as:
- Heat supplied must meet a justifiable heating requirement
- Be an existing or new heating requirement, not one created artificially to claim RHI
RHI payments are:
- Only made to the owner of the biomass installation
- Calculated by multiplying the appropriate tariff by the amount of eligible heat it supplies.
To sum up:
- Tariff depends on the size of the boiler
- Heat output to be metered and the RHI calculated from the amount of eligible heat.
- Payable directly to the owner of the equipment.
- Paid quarterly as long as all conditions continue to be met.
- Immediate eligibility on equipment commissioned on or after 15th July 2009.