The Renewable Heat Incentive (RHI) was confirmed on 10^th March 2011 by the UK coalition government after being initially introduced in 2010.

Criteria:

–      MCS approved contractor and appliance

–      Minimum standards of insulation to be met

There are two steps to the RHI:

–      RHI Premium Payment

–      Ongoing annual payment for 20 years

Who is eligible?

The RHI is eligible for households, businesses, landlords, farmers and much more.

Where?

Anywhere in the UK, and the RHI is particularly aimed at retrofits

Upfront grant:

Installations from July 2011 will be supported by a “RHI Premium Payment” to help people cover the purchase price of green heating systems.

Levels of support for RHI Premium Payments:

•       Solar Thermal – £300/unit

•       Air Source Heat Pumps – £850/unit

•       Biomass boilers – £950/unit

•       Ground Source Heat Pumps – £1250/unit

Tariff Levels set to negate current higher installation costs and then provide a return on investment

Typical “payback times” for GSHP on a new build barn conversion relative to an oil installation: 4 years. After this, net running costs will be negligible.

The tariffs will be paid for 20 years to eligible technologies that have installed since 15th July 2009 with payments being made for each kWh of renewable heat which is produced

•       Will be inflation adjusted

•       Currently not applicable to ASHP – they do not need incentivising!

Renewable Heat Incentive – worked Examples

•       Large 4 Bed “Manor house” in Nottingham

–      Heat Demand: 26kw

–      RHI Contribution/ year: £1118

–      Heat pump running cost / year: £1154

–      Net cost / year: £36