Renewable Heat Incentive (RHI)

The Renewable Heat Incentive (RHI) is a UK Government scheme set up to encourage uptake of renewable heat technologies among householders, communities and businesses through the provision of financial incentives.

About the Scheme

The RHI is a  scheme which provides financial support to renewable heat generators and producers of bio-methane. The scheme, which was launched in November 2011, also provides financial support for multiple units RSL properties.

There are two programmes to the RHI:

  • 1: The Non-Domestic Renewable Heat Incentive which provides the financial incentive to increase the uptake of renewable heat installations in the industrial, commercial, public sector and not-for-profit organisations.
  • 2: The Domestic element of the RHI, is expected to be introduced in spring 2014 following the consultation published in September 2012 and more recently the UK Government Heat Strategy.

The key objective of the scheme is to increase significantly the level of heat generated from renewable energy sources in Great Britain and thereby enable the UK to meet its binding targets to generate 15% of our energy from renewable sources by 2020.

Key Principles

The RHI provides a continuous income stream for twenty years to any organisation that installs an eligible renewable heating system, ensuring that renewable heat is commercially attractive when compared to fossil fuel alternatives.

The RHI is important because it will help increase significantly the level of renewable heat produced in the UK. This is key to the UK meeting its renewable energy targets, reducing carbon emissions, ensuring energy security and helping to build a low carbon economy. The RHI will accelerate deployment by providing a financial incentive to generate heat from renewables instead of fossil fuels.
The types of heating covered by the scheme are:

  • Biomass boilers (Including CHP biomass boilers)
  • Solar Thermal
  • Ground Source Heat Pumps
  • Water Source Heat Pumps
  • On-Site Biogas combustion
  • Deep Geothermal
  • Energy from Municipal Solid Waste
  • Injection of bio-methane into the grid

For more information you can visit the Department of Energy and Climate Change (DECC) or contact us on 01656 747622