The Renewable Heat Incentive

The Renewable Heat Incentive

The RHI is a Government-funded scheme administered by Ofgem. It aims to encourage an increase in the proportion of heat and power, generated by renewable technologies by offering fixed, index-linked regular payments to companies and organisations generating and using the heat produced by renewable energy. See more here

Eligible organisations join a 2 tiered tariff relevant and payable to the run hours for their biomass heating system. The tariff dictates a fixed rate that they will be paid for every kilowatt hour they produce and use over a 20-year period. The RHI tariffs are issued on a quarterly basis and, as with other renewable technologies, the tariff rates will digress over time (only for new-comers) as the total volume of heat produced by renewable technologies increases. This means that early adopters will benefit from a higher 20-year fixed payment.

The Renewable Heat Incentive is ending on 31st March 2021

On 31st March 2021 the RHI will be closed, but only to new-comers. If your biomass boiler is fully installed and commissioned before that date AND you are signed up and registered with OFGEM to receive the RHI then you will be able to relax safe in the knowledge of a 20 year guaranteed income. A large installation requiring complex design, perhaps linked to a combined heat and power unit, a grid connection, SWIP Permit, Planning Permission and requiring new buildings can take a good year to fully deploy so there’s no time to delay.

RHI payments are made quarterly, in arrears, and require that scheme participants submit regular meter readings related to their heat production and usage via a personal online account. The metering systems are installed at point of generation and point of usage and there are rigorous conditions to be met related to their accuracy; for example, where more than one building is using heat, or existing fossil fuel systems are being retained and linked, multiple metering systems are required and heat losses must be calculated and discounted.

For small domestic systems under 45kW, your biomass heating system must be provided by an MCS registered installer who can certify it. This is a prerequisite for joining the scheme.

RHI Portability & Boiler Replacement

Recent changes to the RHI now permit the moving and re-location and even replacement of the qualifying equipment. For example;
if a system was fitted in Care Home, the owner of the equipment can decommission and relocate the boiler at a new location and still be able to claim the remaining term of the RHI payments at the original contract tariff level rate. This also applies to boilers that have been damaged beyond economical repair. This makes investing in a biomass heating system even easier with less risk.

The installation of a biomass heating boiler and storage solution in a modular, pre-packaged plant room (Green Heat Module)  is ideal if there is chance the system may need to be relocated at a future date.

We provide full RHI support

Once your online account is set up, you are required to complete various forms as part of an accreditation process in order to receive payments through the scheme.
These require information related to your energy usage and the installation and metering arrangements. This is all done online and we provide you with any support you need to help you through what can be a complex process. If your biomass heating project is being delivered by one of our Registered Installation Partners, please check with them about the support that they can offer for the RHI process.

If you would like further information on Renewable Heat Premium Payment (RHPP) or Renewable Heat Premium Payment (RHI) Scheme, we suggest the following websites:

Additional information and updates

https://www.ofgem.gov.uk/environmental-programmes/domestic-rhi

https://www.ofgem.gov.uk/environmental-programmes/non-domestic-rhi

https://www.ofgem.gov.uk/key-term-explained/replacing-or-repairing-equipment