The Renewable Heat Incentive (the RHI) is a payment system for the generation of heat from renewable energy sources introduced in the United Kingdom on 28 November 2011. The RHI replaces the Low Carbon Building Programme

Low Carbon Building Programme

The Low Carbon Building Programme was a Government programme in the United Kingdom administered by BERR which ran from 1 April 2006 until its closure to new applications on 24 May 2010...

, which closed in 2010.

The RHI will operate in a similar manner to the existing Feed-in Tariff

Feed-in Tariff

A feed-in tariff is a policy mechanism designed to accelerate investment in renewable energy technologies. It achieves this by offering long-term contracts to renewable energy producers, typically based on the cost of generation of each technology...

 system, and was introduced through the same legislation - the Energy Act 2008. In the first phase of the RHI cash payments will be eligible to owners who install renewable heat generation equipment in non-domestic buildings.

The RHI went live on 28 November 2011. The Coalition Government

Cameron Ministry

David Cameron is Prime Minister of the United Kingdom, after being invited by Queen Elizabeth II to form a new government after the resignation as Prime Minister of Gordon Brown on 11 May 2010. Leading a coalition government formed by the Conservative Party and the Liberal Democrats, the coalition...

 confirmed its support for the RHI in the October 2010 Spending Review and published details on 10 March 2011.. The RHI is due to be extended to domestic buildings in October 2012.

Operation

Through the RHI, generators of renewable heat can be paid up to 8.5p/kWhr for hot water and heat which they generate and use themselves. The RHI tariff depends on which renewable heat systems are used and the scale of generation. The annual subsidy will last for 20 years. As such, users may earn enough money from the tariffs to pay off their installation costs in five to ten years. According to the Government, which has set the tariff levels, users will earn a return of 12% per annum. This will be tax free for individuals. The equivalent for Feed-In Tariffs is 5%-8%.

The RHI provides support for community and district heating

District heating

District heating is a system for distributing heat generated in a centralized location for residential and commercial heating requirements such as space heating and water heating...

 schemes where a single renewable heat system provides heat or hot water to more than one property.

Eligibility

The renewable heat

Renewable heat

Renewable heat is an application of renewable energy and it refers to the renewable generation of heat, rather than electrical power ....

 technologies which are eligible under the first phase of the RHI are solar thermal (heating) panels, ground-, and water-source heat pumps, biomass boilers

Biomass heating systems

Biomass heating systems generate heat from biomass.The systems fall under the categories of:*direct combustion,*gasification,*combined heat and power ,*anaerobic digestion,*aerobic digestion.- Benefits of biomass heating :...

, and biomethane. See table of tariffs for the First Phase of RHI.

Domestic RHI

The Domestic RHI will be introduced in October 2012 and will be available for eligible installations from 15 July 2009 onwards. Any installation taking place from September 2011 onwards will be eligible for the RH Premium Payments which will consist of an upfront payment prior to the RHI being introduced. The RHPP are as follows:

Air Source Heat Pumps £850,
Ground Source Heat Pumps £1,250,
Biomass Boiler £950 and
Solar Thermal £300.

External links

• http://www.decc.gov.uk/en/content/cms/consultations/rhi/rhi.aspx
• http://www.mcsaccredited.com/website/index.php/default/mcs-scheme/rhi.html
• http://www.rhincentive.co.uk
• http://www.mcsdirectory.co.uk/site/index.php/mcs-installer-scheme/rhi.html