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.
Domestic and 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 - Non Domestic Users
|RHI Tariff name||Eligible Technology||Eligible Sizes||RHI Tariff Rate (pence/kWh)|
|Small biomass||Solid biomass||Up to 199kWth||Tier 1: 4.4, Tier 2: 1.17|
|Medium biomass||Solid biomass||200kWth-999kWth||Tier 1: 5.18, Tier 2: 2.24|
|Large biomass||Solid biomass||1000kWth and above||2.03|
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!
Renewable Heat Incentive Tariff Table - Domestic Users
|Technology||Tariff Rate (Pence per kWh)|
|Wood Pellet Boiler||
|Air Source Heat Pump||7.42|
|Ground Source Heat Pump||19.10|
|Solar Thermal Panels||19.51|