Frequently Asked Questions

It is a UK Government scheme which provides financial incentives for users to switch to renewable forms of heating.  The RHI is the first scheme of its kind in the world.

Renewable heat is heat that is generated using an energy source that can be replaced (wood or other biofuel) or is in infinite supply (sunlight or the heat stored in the ground).

Traditional sources of energy such as coal, oil or gas will eventually run out.  If we are to secure our longterm energy demands, the UK needs to switch into different sources of heat now.  In addition renewable energy sources are kinder to the environment as they emit considerably less CO2 into the atmosphere than fossil fuels when burnt.  If we are serious about cutting greenhouse gas emissions, then cleaner, renewable sources of heat are a must. 

• Biomass Boilers (logs, wood chip or wood pellet)
• Solar Thermal
• Ground or Water Source Heat Pumps
• Biomethane

When we first calculated the total returns, we thought we must have made a mistake as the sums were so large.  Surely the Government would never be so generous?  It turns out that our calculations were correct, so it’s now a question of how long this generosity will last.  The amount of money you will get depends on the type of technology adopted and will be paid for every Kilo Watt Hour (kWh) of heat produced over a 20-year period.

You will need to fund the upfront costs of the equipment and its installation.  However, we calculate that return on investment for a medium size 200kW biomass boiler, for example, is just three to five years, giving you 15 years of RHI income.

No.  Whatever the tariff level is on the day the installation is approved for the RHI scheme is the tariff level you will receive for the next 20 years.  It will even be adjusted for inflation.  However, that’s not to say that future tariff levels will stay the same.  The Government has even indicated that they will review take up of the scheme and may well adjust tariff levels sometime in 2012. If you are already part of the scheme you won’t be affected.

Any industrial, commercial or public sector user who switches to one of the supported technologies can receive financial help through the RHI.

The Renewable Heat Incenvtive was launched in November 2011 for industrial, commercial and public sector users.  The RHI for Domestic Users is expected by Autumn 2012 to coincide with the launch of the Green Deal.  However, there does not appear to be much Government activity on this issue and it is possible that the launch for domestic users will be delayed.

The Government has not yet decided on tariff levels for domestic users and is therefore not ready to introduce the scheme.  Instead, domestic users can apply for a ‘Premium Payment’ which is a one-off grant to help cover part of the equipment and installation costs.  Premium payments are available until March 2012.  From October 2012, the Government has committed to opening the RHI up to domestic users, with the launch scheduled to coincide with the Green Deal.

The RHI will be managed by OFGEM who will deal with applications, make payments and ensure compliance with the rules of the scheme.

Ofgem, who will administer the scheme, will produce guidance setting out all the eligibility criteria. Once the scheme is up and running, organisations can apply to Ofgem for support.

Eligible equipment installed after 15 July 2009 will be supported under the RHI.

Heat will be measured through metering. They will need to be installed at the point of generation and, where appropriate, at the point of usage. The meter will be required to meet certain standards.

Yes. For installations up to and including 45kWth, both installers and equipment must be certified under the Microgeneration Certification Scheme (MCS) or equivalent standard. This is to ensure quality assurance and consumer protection.

Where an installation is bought by another person, the new owner can receive the RHI support for the remaining eligibility period, providing it can be proved.

Yes.

No. RHI support will only be available if the installation has not received other public funding. You will need to pay back the funding to be entitled to the RHI tariff.

Yes. As costs fall the support levels for new projects will be reduced. Under an approach called degression, support levels will automatically drop by a given percentage. This will be triggered when a certain capacity level is reached. Degression will be introduced in 2012. The scheme will be reviewed every four years, with the first review in 2014 for implementation in 2015. An emergency review can be called if there are changes to be made.

No. Any changes to support levels following a review will only affect new projects accredited on or after the date new tariffs are implemented. DECC will consider the treatment of installations constructed during a review in 2012.

The RHI will only support useful heat. Broad principles are set out but Ofgem will determine what constitutes useful heat. The only exception is biomethane injection. Heat used for cooling will be eligible for RHI support but this will not include cooling generated by heat pumps. Heat which is used for the generation of electricity and to process internal heat that is part of the efficient operation of a plant will not be eligible for RHI.

Ofgem will be responsible for making the payments and also monitoring compliance with the rules and conditions of the scheme. The payments will be made quarterly over a 20-year period. RHI payments can only be claimed by, and paid to, the owner of the heat installation or the producer of biomethane for injection.