Government Launches Renewable Heat Incentive (RHI)

The Renewable Heat Incentive (RHI) is a new Government initiative providing finance to non-domestic renewable heat generators and producers of biomethane in Great Britain.

Designed to revolutionise the way heat is generated and used, this is the first financial support scheme for renewable heat of its kind. Under the scheme’s terms, organisations may to apply for assistance and, if successful, receive payments on a quarterly basis for heat generated over 20 years.

£860 million has been made available from central Government funding to support the RHI over the period 2011-2015.

Community Buildings are eligible to apply.  Applicants would need to prove that they pay business rates (or are granted relief from rates by the local authority.

The following technologies are included in the scheme:

  • 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 biomethane into the grid

The scheme is being introduced in two phases. In the first phase, long-term tariff support is targeted within the non-domestic sectors, focusing on high energy consumers, including the industrial, business and public sectors. These energy users contribute 38% of the UK’s carbon emissions. Under this phase there is also support of approximately £15 million for households through the Renewable Heat Premium Payment.

The second phase of the RHI will see the scheme expanded to include more technologies as well as support for households. Details about the introduction of Phase 2 are expected to be announced in early 2012.

Generators of heat and producers of biomethane that are based in Great Britain (England, Scotland and Wales) may apply to the RHI, providing they meet the eligibility criteria, at any time.

The RHI is being administered by Ofgem E-Serve. More information about the administration of the RHI can be found on the Ofgem E-Serve Renewable Heat Incentive website.

Further details are also available by contacting Ofgem on 0845 200 2122 between 8.30am and 5pm Monday to Thursday, and from 8.30am until 4.30pm on Fridays. Alternatively, interested parties may send an email to: RHI.Enquiry@Ofgem.gov.uk.

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