Renewable Heat Incentive

Here you will find everything you need to know about the Renewable Heat Incentive (RHI): how it works, what is eligible, how to register and plenty more…

The RHI and how it works

You want to reduce your carbon footprint, lower your fuel bills, become more energy self-sufficient and in this tough economic climate earn some extra income. The Renewable Heat Incentive is a new Government backed scheme being introduced in 2011 to help you do just this!

The RHI is a payment made for generating renewable heat. There are two benefits from the scheme:

  1. You save money by eliminating or reducing your need for gas or oil, both of which are becoming more expensive year-on-year.
  2. You will be paid up to 8.5p per kWh for the heating and hot water you generate and use yourself. The amount you get paid will depend on what system you have and how large it is.

The RHI tariff last 20 years and like the feed-in tariff is indexed linked to inflation.

Residential and non-residential systems

Support for residential installations is not planned to start until October 2012, though there will be a so-called “RHI Premium Payment” which is likely to take the form of a capital grant for systems installed before then.

Support for industry, commercial and public sector (non-residential) installations started 28 November 2011.

Excluded technologies

Air source heat pumps and solar thermal above 200kW are not included in phase 1 (non-residential).

Restricted technologies

Exhaust air source heat pumps are not supported by the RHI as they are not classified as renewable under the EU Renewable Energy Directive. Chapter 4 of the Government’s RHI annoncement says,

“Exhaust air heat pumps use air extracted from inside the building, for example from kitchens or computer server rooms, as their air source. They are particularly useful in very well insulated buildings which require mechanical ventilation. However, they are not classified as renewable under the RED as they do not rely solely on outside air and therefore will not be eligible for the RHI.”