The Renewable Heat Incentive is a Government funded scheme which provides financial incentives to commercial and public sector organistions that employ eligible renewable heating technologies.
Non-domestic users can apply for the RHI now and begin receiving payments based on the energy they produce.
For the initial phase of the non-domestic scheme, the Government have set the following tariff:
Renewable Heat Incentive Tariff Table
RHI Tariff name
RHI Tariff Rate (pence/kWh)
Up to 199kWth
Tier 1: 8.3, Tier 2: 2.1
Tier 1: 5.1, Tier 2: 2.1
1000kWth and above
In each year the Tier 1 tariff is paid on the peak load hours of the boiler (this being boiler capacity x 1314) which determines the kWh's applicable. After this point, the Tier 2 tariff will apply for the rest of the heat produced.
A Medium Biomass boiler, of 250kWth operating for approximately 7 hours a day in Winter and 3 hours a day in summer. This equates to 1,825 hours in total each year, which at full capacity would produce annually 456,250kWh's of useful heat. It therefore would receive the Tier 1 tariff of 5.1p per kWh for the first 328,500kWh's (250 x 1,314 hours), and then earn the Tier 2 tariff of 2.1p per kWh for the remaining 127,750kWh's. This totals £19,436.25 per year in earnings from the RHI. Over the full 20 years the scheme would pay out £388,725 in this example!
The domestic RHI tariffs are not available yet, but we will keep you updated as soon as we are informed of these figures.