Renewable Heat Incentive (RHI)

renewable-heat-incentive-scotlandThe Renewable Heat Incentive (RHI) is a government backed incentive to encourage individuals, communities and businesses to switch from using fossil fuel for heating to renewables energies such as wood fuel.

There are different tariffs and rules depending on whether your system is generating heat for domestic or commercial use.

Domestic Renewable Heat Incentive (RHI)

You could get money towards renewable heating costs in your home.

The types of heating which you could apply for are biomass boilers, solar thermal water heating, certain heat pumps, geothermal, bio-methane and combined heat and power systems are also eligible. Payments are made for 7 years and are based on the amount of renewable heat made by your heating system.

It is best to seek advice from your installer directly to find out what you are eligible for.

Biomass boilers & stoves Tariff (1st October 2015 – 31 December 2015)
Tariff (per kilowatt hour renewable heat) 6.43p

Commercial Renewable Heat Incentive (RHI)

The Non-Domestic Renewable Heat Incentive (RHI) is a Government environmental programme that provides financial incentives to increase the uptake of renewable heat. For the non-domestic sector broadly speaking it provides a subsidy, payable for 20 years, to eligible, non-domestic renewable heat generators in Great Britain.

The current Commercial RHI Tariffs are shown in the table below:

Tariff Name Eligible Sizes Tariffs (from 1st October 2015) Tier
Small commercial biomass Less than 200 kWth 4.18p/kWh Tier 1
1.11p/kWh Tier 2
Medium commercial biomass 200 kWth to 1MWth 4.18p/kWh Tier 1
1.11p/kWh Tier 2
Large commercial Biomass 1MWth and above 2.03p/kWh
Tariff Name Eligible Sizes Tariffs (from 1st October 2015) Tier
Small commercial biomass Less than 200 kWth 4.18p/kWh Tier 1
Small commercial biomass Less than 200 kWth 1.11p/kWh Tier 2
Medium commercial biomass 200 kWth to 1MWth 4.18p/kWh Tier 1
Medium commercial biomass 200 kWth to 1MWth 1.11p/kWh Tier 2
Large commercial Biomass 1MWth and above 2.03p/kWh

The two tier mechanism works in that each year the Tier 1 tariff is paid until the system has operated up to 15% of the annual rated output (the equivalent of 1,314 hours at the rated capacity of the installation). Usage after 1314 hours is payable at Tier 2 tariff.

If you run a 199kW boiler for 1,314 running hours per annum, maximising tier 1 Renewable Heat Incentive (RHI) Payments, the boiler will generate approximately £21,964 in year one alone.

There are three steps to the RHI:

Step One: Install a renewable heat systems in your property such as a biomass boiler, solar thermal panels or heat pump.
Step Two: Measure how much heat your renewable energy system produces (via a heat meter).
Step Three: Get paid a fixed amount based on the heating system’s output, the type of technology and the size of the system.

The Renewable Heat Incentive is for everyone, including households, landlords, businesses, farmers, hospitals, schools, care homes and more. The RHI can even be used by entire communities, coming together to invest in a renewable scheme from which they will all use the heat and share the income.

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Visit Our Showroom

The AC Gold renewable energy showroom in Stirling offers a unique, friendly experience and the opportunity to see a range of renewable energy systems on display including solar PV, biomass boilers, off-grid power solutions & a variety of energy efficient heating products.

AC Gold Renewable Energy Showroom
11 Back O'Hill Industrial Estate, Stirling, FK8 1SH

Weekdays: 9am - 5pm - Saturday: by appointment