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The Renewable Heat Incentive (RHI)

Posted on Tue 7th Mar, 2017 in: Biomass FuelTips And Tricks

The Renewable Heat Incentive (RHI)

What is the RHI?

The RHI scheme is a government financial incentive to promote the use of renewable energy. By using heating systems which use eligible energy sources it helps the UK reduce it's carbon emissions and meet it's renewable energy targets. 

 

Who can be part of it?

Anyone can be part of it- you juts have to meet the joining requirements. It is for households and businesses both on and off the gas grid.

There are 2 schemes in the RHI- domestic and non-domestic. They have different joining conditions, tariffs, rules and application processes. to join the Domestic RHI, the property with the system must be capable of getting a domestic Energy Performance Certificate (EPC). The EPC is proof that the the property is assessed as a domestic dwelling. The non-domestic RHI is for those with systems in commercial, public or industrial premises. This includes small or large businesses, hospitals, schools and organisations with district heating schemes where one system heats multiple homes.

 

What's in it for me?

People who join the scheme and stick to the rules recieve quarterly payments for 7 years, receiving a tariff for every kilowatt hour (kWh) of renewable heat you produce. In the non-domestic RHI, quarterly payments are recieved for a longer period of 20 years.

 

Why was the RHI introduced?

The scheme was introduced in 2014 and since then it has seen thousands of people join and recieve payments successfully. The UK's targets are to reduce carbon emissions from heating and to produce 12% of it's heat from renewable sources by 2020.

 

For more information, see the Ofgem website, or:

Essential guide for applicants of the Domestic scheme- https://www.ofgem.gov.uk/ofgem-publications/87121/drhiessentialguideforapplicantsv3mar2016web-pdf

Easy guide to applying for the non-domestic scheme- https://www.ofgem.gov.uk/system/files/docs/2016/07/easy_guide_to_applying_final_july_2016.pdf

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