If tariffs change, will my payments change?

Under the Renewable Heat Incentive renewable energy users will be paid according to the level of energy they produce. This will be based on every kilowatt-hour produced and the level of payment depends on which renewable technology and system size is used.

The RHI payments are made on a quarterly basis for a guaranteed 20 year period, which not only covers the cost of the initial installation but also provides a constant revenue stream for the user. Currently only the non-residential tariff tables are available, as the residential phase of the scheme is not open for applications until late 2012.

For small and medium biomass boilers the tariff tables are split into two tiers. Once the system reaches a certain point under the Tier 1 payment structure then it diverts down to Tier 2. This is designed to provide a good level of support without over-supporting systems which have a relatively high load factor.

If RHI tariffs change, will my payments change?

The short answer is no. Any changes made to the tariff levels will only affect new projects and will not influence the payment levels set before this. This is one of the reasons why we are recommending that people take up the RHI now, as the tariff levels currently proposed are generous and are unlikely to stay this high. By applying now you can set your tariff levels at this higher figure for the next 20 years.

The Department of Energy and Climate Change are likely to consider the tariffs during a review in 2012.

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