Thomas Edison 1931
Renewable Heat Incentive (RHI)
Renewable Heat Premium Payment and the Renewable Heat Incentive (RHI)
The Rewnewable Heat Premium Payment is avalible now for commercial and community projects. From a domestic point of view, the Renewable Heat Incentive (RHI) will come into operation from summer 2013
The Renewable Heat Premium Payment (RHPP) provides a grant for the installation of an eligible technology. The scheme has been renewed from April this year and is likely to run until the introduction of the RHI if the funds allocated to the scheme are not used by then.
If you are thinking about Solar Thermal or Heat Pumps this is a good time to install. You will recieve the RHPP grant of £300 for Solar Thermal, £850 for Air Sourced Heat Pumps and £1250 for Ground Sourced Heat Pumps and you will then also benefit from the RHI when it comes into effect.
The Renewable Heat Premium Payment is avalible to houses without mains gas for Heat Pumps and to any house for Solar Thermal.
The Renewable Heat Incentive is available now for commercial and community projects and will be available for domestic project at the following anticipated rates as per the DECC consultation proposal as at 20th September 2012:-
| Technology | Tariff rate (kWh) | Tariff duration (years) | Support calculation |
| Solar thermal | 17.3 | 7 | Deemed |
| Air Sourced Heat Pump | 6.9 - 11.5 | 7 | Deemed |
| Ground Sourced Heat Pump | 12.5 - 17.3 | 7 | Deemed |
RHI Key points
- Funded from general govt spending.
- Roll out in 2 phases.
- Provides a fixed payment for each kWth of heat produced
- Installations require meter
- Payments made quarterly
- Focuses on many technologies
- Solar thermal return based on repayment of capital cost
- Payments can’t be assigned as with FIT. Owner receives payment
- Definition of owner ambiguous
- Payments for 7 years
Phase 1
- Phase 1 July 2011 but back dated to July 2009
- Mainly non domestic
- Small domestic pilot scheme(£15m)
Phase 2
- 2013 will be available to domestic installations
- Won’t be subject to review
- May not be implemented in current proposed form
For full details of the Renewable Heat Incentive please see the Government paper by clicking here.
