Renewable Heat Incentive

The Renewable Heat Incentive (RHI) is an exciting new financial support scheme for the production of renewable heat.

The RHI provides a regular payment for the production of renewable heat.  Heat produced from a ground source in a commercial application is ‘metered’, and ‘deemed’ in a domestic application.  At Present only Ground Source Heat Pumps (not Air Source) are eligible for the tariffs.

 

Commercial

The RHI for commercial installations is now open for applications.

Apply online via Ofgem at: http://www.ofgem.gov.uk/e-serve/RHI/howtoapply/Pages/howtoapply.aspx

Tariff rates for ground source heat pumps are given below

Heat Pump Size	Rate
< 100kW	4.5p/kWh
> 100kW	3.2p/kWh

The tariff is index linked for 20 years and will be paid quarterly.

 

Example

A 10kW GSHP produces 25,000kWh of heat per year (assuming 2500peak load hours)

25,000kWh x 4.5p/kWh = £1,125/year

 

Domestic

The RHI for domestic installations is due to start in October 2012.  Any eligible installation after July 2009 is eligible for the payments from the commencement of the scheme.

Tariff rates have not yet been published for domestic installations, however we would expect these rates to be inline with the commercial tariffs.