Highland Birchwoods

Renewable Heat Incentive (RHI)

25 May 2010

To encourage a radical change in the way we generate heat the Department of Energy and Climate Change have announced their intention to introduce the renewable heat incentive (RHI) by April 2011. They hope this will lead to a significant increase in the level of renewable heat at the domestic, commercial and industrial scale saving up to 60 million tonnes of carbon by 2020. Operating across the whole of the UK, and open to all, it is designed to bridge the gap between the cost of conventional and renewable heat systems at all scales. To achieve this the government intends to provide financial support that will encourage individuals, communities and businesses to switch from using fossil fuel based heating systems to renewable technologies and resources.
Which technologies would be included within the scheme?
Bio-energy:
• Solid Biomass
• Biogas
• Bioliquids
Heat Pumps:
• Air
• Water
• Ground source
Solar thermal technologies
Renewable combined heat and power
District Heating generated from renewables
How would it work?
To be eligible for the scheme the installation would have to be completed after 15th July 2009, and the equipment fitted by an MSC accredited installer. There would also be either encouragement for energy efficiency through the level of tariff paid or a requirement for a minimum level of insulation. Depending on the type of equipment it’s proposed that the tariff lifetime would be between 10 – 23 years.
To avoid a situation where people are encouraged to over-heat their homes or businesses in order to maximise the level of RHI support they would receive generators of renewable heat at small and medium scales will receive a fixed annual “deemed” tariff payment based on the assessed heat requirement (or heat load) of the building assuming uptake of basic energy efficiency measures (basic loft insulation and cavity wall filled where appropriate).
At large scale sites, heat is commonly used for industrial processes so the risks and costs of metering are lower. It’s therefore proposed that RHI payments to these generators are based on metered output.