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How long will the RHI payments last?

As part of the Government’s target to reduce carbon emissions by 80% by 2050, the Renewable Heat Incentive is a financial mechanism to encourage properties to employ renewable heat technologies rather than traditional fossil fuels.

Under the RHI, payments will be made depending on the amount of heat produced each year by the renewable heat source.

How long will the RHI payments last?

As part of the scheme Non-Domestic wood pellet user will be eligible for RHI payments over a guaranteed period of 20 years, whilst Domestic users can receive payments for 7 years. The payments will be made on a quarterly basis each year taking into account the level of heat generated by the renewable technology. The tariff is fixed for this period and will only be adjusted annually in line with the retail price index.

It is expected that new registrations for the RHI will be accepted until at least 2020, giving both commercial, public sector and domestic heat users a large window in which to install their renewable heating technology and join the RHI scheme. 

However, the RHI in its current form is very generous for early adopters.  Tariff levels for new installations will reduce over time as a result of increased uptake.

Next page >> Who will the payments come from?