Renewable heat incentive (RHI)

In March 2011 the UK Government announced the details of their Renewable Heat Incentive (RHI).

RHI is designed to provide financial support that encourages individuals, communities and businesses to switch from using fossil fuels for heating to renewables such as wood fuel.

There will be two phases for domestic customers:

Phase 1 (available from July 2011) - RHI Premium Payment

This is called the RHI Premium Payment and will be worth around £15million and available to 25,000 householders in Great Britain who install from July 2011.

The exact amounts available to consumers have yet to be confirmed. However, the Department of Energy and Climate Change (DECC) have announced that the following amounts may be available:

• Solar Thermal - £300/unit
• Air Source Heat Pumps - £850/unit
• Biomass boilers - £950/unit
• Ground Source Heat Pumps - £1,250/unit

These are one off payments, so not annual. DECC plan to publish details of the RHI Premium Payment and how this will apply in May this year though recipients of this payment will need to ensure that:

• They have a well-insulated home based on its energy performance certificate
• They agree to give feedback on how the equipment performs

Phase 2 (available from October 2012) - RHI tariffs

People in receipt of the Renewable Heat Premium Payments will be able to receive long term RHI tariff support once these tariffs are introduced, as will anybody who has installed an eligible technology since the 15th July 2009.

These tariff payments will start alongside the Green Deal from October 2012 to allow a more whole-house approach to heat production and energy saving. Full details are available on DECC's website.