The Renewable Heat Incentive
The Renewable Heat Incentive (RHI) is a Government-funded scheme administered by Ofgem. It aims to encourage an increase in the proportion of heat generated by renewable technologies by offering fixed, index-linked regular payments to companies and organisations generating and using heat produced by renewable energy.
Eligible organisations join a tariff relevant to the capacity of their biomass heating system. The tariff dictates a fixed rate that they will be paid for every kilowatt hour they produce and use over a 20-year period.
The RHI tariffs are issued on a quarterly basis and, as with other renewable technologies, the tariff rates will degress over time as the total volume of heat produced by renewables increases. This means that early adopters will benefit from a higher 20-year fixed payment.
Those signing up to the current payment tariff will receive between 1p and 8.6p for every kWh that they produce and use, depending on the size of the boiler.*
*According to tariff at Sept 2013
RHI payments are made quarterly, in arrears, and require that scheme participants submit regular meter readings related to their heat production and usage via a personal online account. The metering systems are installed at point of generation and point of usage and there are rigorous conditions to be met related to their accuracy; for example, where more than one building is using heat, or existing fossil fuel systems are being retained and linked, multiple metering systems are required and heat losses must be calculated and discounted.
For systems under 45kW, your chosen heating system must be provided by an MCS registered installer who can certify it. This is a prerequisite for joining the scheme.
Recent changes to the RHI now permit the moving and re-location of the qualifying equipment. For example;
if a system was fitted in Care Home, the owner of the equipment can decommission and relocate the boiler at a new location and still be able to claim the remaining term of the RHI payments at the original contract tariff level rate. This portability makes investing in a biomass heating system even easier with less risk. The installation of a modular, pre-packaged (Green Heat Module) biomass heating boiler and storage solution is ideal if there is chance the system may need to be relocated at a future date.
We provide full RHI support
Once your online account is set up, you are required to complete various forms as part of an accreditation process in order to receive payments through the scheme.
These require information related to your energy usage and the installation and metering arrangements. This is all done online and we provide you with any support you need to help you through what can be a complex process. If your biomass heating project is being delivered by one of our Registered Installation Partners, please check with them about the support that they can offer for the RHI process.