Generate Income with Renewable Heat Incentive
The Renewable Heat Incentive (RHI) scheme rewards those who use certain type of renewable energy in their buildings. Incentives exist for both the residential and non-domestic sectors, with the overall aim of the UK being able to produce 12% of it's energy from renewable sources by 2020.
Unlike the fee-in tariff scheme which provides an income for households that generate energy, the RHI scheme is designed to help offset the cost of installing and running a renewable heating system.
The current type of renewable energy that fall under the scheme are solar thermal panels, biomass heating/stoves, air to water heat pumps and ground to water heat pumps. Air to air heat pumps, log stoves, hybrid PVT and pellet stoves without back boilers are not supported by the RHI scheme.
Applying for RHI
Applications are made directly via Ofgem's website. If you have all required information to hand you will receive an immediate decision, rather than having to await a manual review.
Before having anything installed it's important to use an MCS (Micro-generation Certification Scheme) accredited company as the will provide you with the relevant certification for your installation. Other information that is required for the application process is your Energy Performance Certificate (EPC) number , and the green deal advice report number both of which you should have from the initial assessment of your property prior to the work taking place.
If you've already installed a system you may still be able to claim, although this will depend on when it was installed. You will also need to obtain MSC certification before applying, and as it stands only systems installed on or after 9th April 2014 are eligible, with applications needing to be made within a year of the commissioning date
Once you've joined the scheme you'll receive payments at quarterly intervals for every kWh of renewable heat you produce, for a period of seven years. You can have more than one type of technology in use, and as such will receive a payment for each. The energy regulator Ofgem handles the processing of applications and payments.
The tariff rates are set by the government and are designed to compensate for the difference between the cost of installation and operation of the renewable system against that of running a fossil fuel system. Normally the energy required to heat the property is estimated based on the energy performance certificate, and then payments are proportionately calculated based on the size and number of renewable systems you have. The rules for solar thermal panels being the exception here, whose calculations are based on the system performance estimate in the MCS.
The rates per unit for each energy source are as follows:
Air to water heat pumps
Ground to water heat pumps
Applications submitted between 01/04/15 - 30/06/15
Applications submitted between
01/0715 - 30/09/15