Renewable Heat Initiative – support for generating heat from low/renewable energy technologies
Following the introduction of a Feed in Tariff (FIT) to support the generation of renewable electricity from April 1st 2010, paid by the energy companies, a similar arrangement, the Renewable Heat Incentive (RHI), will be put in place for generating renewable heat. This programme will be funded directly by the Government.
The start has been delayed several times but following a consultation that ended during December 2012, a scheme was launched for existing installations in Summer 2014. New installations can apply once existing ones are dealt with. The Government has appointed OFGEM to run the scheme. Details below are based on the outcome of the consultation.
Any payments made under the Renewable Heat Incentive Premium Payment (RHIPP) will be recovered from the first years payments
Qualifying Conditions
For most technologies a possible higher and lower rate have been proposed.
Biomass 5.2 - 8.7 (p/KWh)
Air Source Heat Pump 6.9 - 11.5(p/KWh)
Ground Source Heat Pump 12.5 - 17.3(p/KWh)
Solar Thermal 17.3(p/KWh)
Likely value of renewable heat technology
Air Sourced Heat Pump
Semi detached (3 bed) heating plus hot water cost in a well insulated property
Annual running cost £834
Annual RHI over 7 years £2,107
Ground Sourced Heat Pump
Semi detached (3 bed) heating plus hot water cost in a well insulated property
Annual running cost £654
Annual RHI over 7 years £3,818
Solar Thermal
Semi detached (3 bed) with 2 square meters of flat solar panel (or 1.5 square meters of evacuated tubes)
Annual savings compared to gas combi £62
Annual RHI over 7 years £494
Detached (4 bed) with 4 square meters of flat solar panel (or 3 square meters of evacuated tubes)
Annual savings compared to gas combi £92
Annual RHI over 7 years £736
April 2013
Following the introduction of a Feed in Tariff (FIT) to support the generation of renewable electricity from April 1st 2010, paid by the energy companies, a similar arrangement, the Renewable Heat Incentive (RHI), will be put in place for generating renewable heat. This programme will be funded directly by the Government.
The start has been delayed several times but following a consultation that ended during December 2012, a scheme was launched for existing installations in Summer 2014. New installations can apply once existing ones are dealt with. The Government has appointed OFGEM to run the scheme. Details below are based on the outcome of the consultation.
Any payments made under the Renewable Heat Incentive Premium Payment (RHIPP) will be recovered from the first years payments
Qualifying Conditions
- System installed after 15th July 2009
- Equipment must be MCS approved
- Must have carried out any “Green Tick” measures identified by a Green Deal Assessment (properties with measures already installed will require a Green Deal Survey) except for solid wall insulation
- Measures installed must be large enough to meet what is determined as heat requirement for the property (except for thermal)
- Based on deemed heat energy generated (i.e. based on calculations by SAP or RdSAP) over a 20 year period.
- Payments will be made over 7 years, adjusted for the reduced period for rpi etc. (this effectively doubles the payment)
- Metering only required when there is additional fixed heating is retaining.
- AGAs and Rayburns should have hot water and radiators (both) disconnected from range.
For most technologies a possible higher and lower rate have been proposed.
Biomass 5.2 - 8.7 (p/KWh)
Air Source Heat Pump 6.9 - 11.5(p/KWh)
Ground Source Heat Pump 12.5 - 17.3(p/KWh)
Solar Thermal 17.3(p/KWh)
Likely value of renewable heat technology
Air Sourced Heat Pump
Semi detached (3 bed) heating plus hot water cost in a well insulated property
Annual running cost £834
Annual RHI over 7 years £2,107
Ground Sourced Heat Pump
Semi detached (3 bed) heating plus hot water cost in a well insulated property
Annual running cost £654
Annual RHI over 7 years £3,818
Solar Thermal
Semi detached (3 bed) with 2 square meters of flat solar panel (or 1.5 square meters of evacuated tubes)
Annual savings compared to gas combi £62
Annual RHI over 7 years £494
Detached (4 bed) with 4 square meters of flat solar panel (or 3 square meters of evacuated tubes)
Annual savings compared to gas combi £92
Annual RHI over 7 years £736
April 2013