The Renewable Heat Incentive is a financial incentive to encourage commercial and public sector organisations users to take up renewable heating technologies. The payments will be made on quarterly basis for a set period of 20 years.
Under the RHI, the Government will be pumping £860m into the renewable heat market between now and 2015 to encourage the use of technologies such as wood pellet boilers.
Who will the RHI payments come from?
Although widely debated during the initial stages, it has been confirmed that the RHI will be paid directly by the Treasury.
The scheme administrator OFGEM is responsible for making sure that payments are made and that compliance is maintained at all times by those within the RHI. OFGEM will ensure that the rules and conditions of the scheme are followed in order to earn the RHI payments.