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 solar hot water system in a commercial application is ‘metered’, and ‘deemed’ in a domestic application.  Both off-gas and gas connected properties are eligible for the solar hot water RHI payments.

 

Commercial

The RHI for commercial installations is open for applications.  

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

The tariff for solar hot water installations <200kW is 8.5p/kWh

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

Example

A 20 m squared solar array for a shower block produces 8,000kWh/year

8,000 x 8.5p/kWh = £680/year in RHI payments

 

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.