You may have heard about the RHI (Renewable Heat Incentive). If you have not, read on for it could be in your interests to do so

1) What is it?

The Renewable Heat Incentive is a government backed financial carrot to persuade you to install a green heating system.

2) And why would the Government do that?

a) Carbon: Because the government has recognized that heat production accounts for 47% of carbon emissions. The government has set legally binding targets to cut carbon emissions by 80% by 2050. 15% of the total UK energy supply is to be generated by renewable sources by 2020; currently the figure is 2%.

b) Security of Energy Supply: The government is planning to prevent the UK being dependent upon other nations for its supply of energy. In 2008 the UK imported 25% of its natural gas. Projections suggest that this could rise to around 60% by 2020. Why import a commodity that you can harness from the environment around you?

c) Continuity of Supply: Carbon based energy wont last for ever. The forces of supply and demand may force the price of oil and gas up rapidly in the next decade. The UK governments aim is that the RHI will make renewable energy mainstream.

3) Where does it apply to?

a) The RHI will be available in England, Scotland and Wales. Northern Ireland is excluded from the RHI as the province is not covered by the Energy Act 2008.

4) Who is Eligible?

a) The RHI is open to individuals, community groups and businesses

i) Households who currently use conventional fossil fuels to heat their homes will be able to claim the RHI if they switch to renewable technologies. This also applies to private landlords
ii) Social Housing. The same applies to social housing with tenants able to benefit from lower heating costs as a result.
iii) Rural communities: Rural communities are more likely to pay more for their heating as the mains gas supply may not serve remote locations. Rural communities therefore have much to gain from embracing renewable energy.
iv) Public Sector: RHI applies to public sector buildings. Indeed the government plans that the public sector should play a leading role in raising awareness of this exiting new technology.
v) Industrial and Commercial: These buildings are eligible and particularly suited to renewable heating schemes due to there large roof areas – ideal for harnessing the sun!

5) What type of schemes are eligible?

a) Ground source heat pumps
b) Air source Heat pumps
c) Water source heat pumps
d) Solid biomass (excluding traditional coal and wood fires)
e) Biogas
f) Solar thermal

6) How Much?

a) Different technologies will be rewarded according to different tariff levels. The tariffs will be set at such a level to encourage you to invest in a scheme. The tariff levels aim to deliver a 12% return on investment (with 6% applying to solar thermal). This makes it a pretty sound investment by any standards.

b) For how long will be payment be made? 15 to 23 years depending upon the life span of the scheme. Ground source heat pumps would attract payments for 23 years.

c) Can you show me some examples?

i) Small 3 bedroom detached modern house (built 2003):

ii) Large 4 bedroom detached house (built 1985):

iii) Barn Conversion 4 bedroom (new build):

7) How do I become Eligible?

a) Have a renewable heating scheme designed, installed and accredited by an MCS accredited installer
b) Like who? Like us. Visit our contact page to get in contact or to find out more information.
c) There are preconditions but these are good practice and common sense measures

8) What is MCS?

i) MCS stands for Micro generation Certification Scheme. MSC installers have been inspected and audited to provide you with the assurance that they are competent to design and install a renewable energy scheme.
ii) Further details of the MCS scheme can be found at: http://www.microgenerationcertification.org/

9) When can I benefit from the scheme?

a) All schemes installed after 15th July 2009 are eligible to receive payments when the scheme starts in April 2011, so there is no need to delay.

Get in touch with us now via our contact page and we’ll help you through the process and save you as much money as we possibly can.