The Renewable Heat Incentive (RHI) is a UK Government scheme set up to encourage uptake of renewable heat technologies among householders, communities and businesses through the provision of financial incentives. The UK Government expects the RHI to make a significant contribution towards the 2020 targets for the reduction of emissions.
- Your Biomass System must have been installed after July 15th 2009.
- Emission levels must be below a maximum 30g g/GJ Particulates and 150g/Gj Nitrogen Oxide.
- Installations below 45kW must be Microgeneration Certification Scheme (MCS) accredited.
- There are two phases to the RHI (as detailed below).
Commercial, Charity, Public Sector and Non-profit organisations. Also includes domestic district heating schemes, where more than one domestic property is heated by a single biomass boiler. Launched on November 28th 2011.
The RHI offers annual payments for 20 years to the owners of the equipment, index linked for the heat they generate and use. Combined with the fuel cost savings over fossil fuels, which can be 50% or more, the biomass heating opportunity offers a great return on investment and payback on average of 4-5 years (including the cost of finance). Once your biomass installation is accredited by OFGEM, the submission of quarterly heat meter readings determine the quarterly payments that will follow.
|Tariff Name||Eligible Technology||Eligible Sizes||Tier||
|Domestic Biomass||Solid Biomass*||10.98|
|Small Commercial Biomass||Solid Biomass*||Less than 200kWh||
|Medium Commercial Biomass||Solid Biomass*||200-1,00kWh||
|Large Commercial Biomass||Solid Biomass*||1,000kWh +||1|
|*including that generated in municipal solid waste, **(Pence per kWh)|
Domestic heating installations, including single domestic properties heated by a single biomass boiler up to a maximum of 45kW.
The Domestic Renewable Heat Incentive (RHI) launched on April 9th 2014. The scheme has been designed to drive forward uptake of renewable heat technologies in homes across Great Britain to cut carbon, help meet renewables targets and save money on fuel bills.
Tariff levels have been set at 12.2p/kWh for biomass boilers. The domestic scheme therefore represents payments of circa £3,200 a year for a 20kW biomass boiler and circa £6,400 for a 40kW biomass boiler.
Payments will be made on a quarterly basis for seven years. The tariffs have been set at a level that reflects the expected cost of renewable heat generation over 20 years. In most cases, payments will be made based on estimated (deemed) heat demand of the property. DECC will offer an extra, set payment of £200 per year where metering and monitoring support packages are required for biomass boilers.
If you should have any queries or concerns relating to the biomass RHI payments please get in touch with us and we would be happy to help.