Renewable Heat Incentive

The government launched the Clean Energy Cashback scheme in order to incentivise the generation of heat and power from renewable sources.

The renewable energy tariff for heat and is known as the Renewable Heat Incentive (RHI). The government is currently consulting on the design of the incentive which they are proposing to introduce in April 2011.

Financial benefits
The Renewable Heat Incentive will guarantee payments for businesses, organisations or households who generate their own heat from renewable or low carbon sources such as biomass boilers, heat pumps and solar thermal systems.

The Government are not proposing to measure the heat generated from installations. Instead, an estimated figure, which will vary by building age and size as well as technology type, will be used to work out payments. The tariffs will be set by government and administered by Ofgem and it is proposed that payments would be made annually.

Which systems are covered by the RHI?
Biomass boilers, heat pumps and solar thermal systems at all scales are covered by the proposed scheme.

The government is proposing that projects where an installation was completed before 15 July 2009 will not be entitled to the Renewable Heat Incentive. Anything installed after this date is proposed to receive the incentive as if it was installed on the first day of the scheme

In order to qualify for the RHI, it is also likely that systems will have to be installed and registered by certified installers.

More information on the Renewable Heat Incentive is available at http://www.energysavingtrust.org.uk/ and http://www.rhincentive.co.uk/