The Renewable Heat Incentive (RHI) is a scheme set up by the UK Government, in order to deliver its world and European commitments to carbon reduction. The scheme is designed to encourage domestic householders, communities and commercial businesses, to install renewable heating technologies such as biomass, biogas and heat pumps and to move away from the heavily polluting fossil fuel systems, such as gas, oil and coal.
Biomass fuel is often cheaper per kwh, than the fossil fuel required to generate the equivalent amount of heat. As a result, your annual fuel costs are reduced, potentially by up to 50%.
Additionally, the RHI scheme provides financial incentives that offset the higher install cost of renewable technologies. These incentives include tax breaks, capital allowances and tariff payments to the owners of low carbon heating systems. Tariff payments are made quarterly and are normally tax free, index linked and guaranteed for 20 years from the date of system commissioning.
Commercial (non-domestic) RHI was launched in November, 2011. Since then, almost £1bn of tariff payments have been made to thousands of renewable heating system owners.
Once you’re accredited, a tariff level will be assigned to your installation based on its technology and size. Payments will be made based on the actual heat output of the installation. They begin to accrue from the date of accreditation of the installation.
The current rate for biomass are for all installations with an accredition date on or after July1, 2017 are:
|Tariff Name||Eligible Sizes||Tariff (% per kW)|
|Small CB||Less than 200kWh||2.71|
To help you to join this green revolution, the UK Government are rewarding you by exempting you from taxes such as the Climate Change Levy. You are also paid for every kwh of heat you generate from biomass, from the Renewable Heat Incentive (RHI) scheme. These payments are index linked to inflation and they’re guaranteed for 20 years.Find out more about the RHI Scheme