Renewable Heat Incentive

Recent news suggests that the Renewable Heat Incentive to be introduced in two phases over 2011 and 2012:

  • Commercial RHI in December 2011
  • Domestic RHI in October 2012 to coincide with Green Deal but RHI Premium payment available from July 2011

The Government needs to demonstrate that they are hitting environmental targets to reduce carbon emissions. Energy saving measures are now a priority and, to demonstrate this, the government set up the Department for Energy & Climate Change (DECC) in 2008.

Therefore the Feed in Tariffs and the proposed Renewable Heat Incentive are available to individuals, businesses and public bodies to reduce carbon emissions and promote energy saving.

Here at Eco2Solar, we believe the Renewable Heat Incentive will provide a much better financial incentive for customers because they will provide a guaranteed income for the heat generated at an extremely attractive rate for 20 years

Fully Accredited

Eco2Solar are accredited under the UK Microgeneration Certification Scheme (MCS) for Feed in Tariffs and to install approved technology that will be eligible for the proposed Renewable Heat Incentive. This is a difficult qualification to obtain and, when we received thiscertificate in April 2008, we were one of an elite group of only 12 solar installation companies to be accredited. This a demonstration of thequality of our solar heating installations and our customer service.

If a solar installer is not accredited to the MCS, then you cannot claim the proposed Renewable Heat Incentive or the Feed in Tariffs

What is the Renewable Heat Incentive?

The Renewable Heat Incentive (RHI) is like Feed in Tariffs for heat.

It is not tied to just Solar Thermal energy. You can benefit from it if you install any of the following types of renewable technology:

  1. Biomass (wood burning) Boiler
  2. Air source and Ground source Heat Pumps
  3. Solar Thermal panels

How does the Renewable Heat Incentive work?

It works in a similar way to the Feed in Tariffs in that you, the customer, receive a premium rate for every unit of heating that is generated by the system.

The RHI will be introduced separately for commercial and domestic properties:

Commercial RHI commences in July 2011 for solar thermal, biomass and Ground Source Heat Pumps. Energy to be metered and tariff lasts for 20 years.

Rates are 8.5p for solar thermal up to 200kW and ground source is 4.3p up to 100kW and 3p above 100kW. Air source is not supported for commercial initially – but may be supported from 2012

See tariff rates below :

Domestic RHI introduction split into two phases

Phase 1: Renewable Heat Incentive Premium – close to first year RHI payment.

These will still eligible for the full RHI tariff from October 2012 and are available from July 2011.There will be minimum energy efficiency measures and additional monitoring/reporting on performance of their installation

Rates :

- Air Source Heat Pump: £850

- Ground Source Heat Pump: £1,250

- Solar Heating: £300

Phase 2: Qualifying residential renewable heating systems receive ongoing annual RHI payment for 20 years

— Systems installed since July 2009 will be eligible from October 2012 to coincide with the introduction of the Green Deal energy efficiency loan scheme, including those who received a Renewable Heat Incentive Premium in Phase 1.

— Phase 2 rates are in consultation this year and will be announced late 2011

Only retro-fit installations will be eligible for RHI Premium Payment and the domestic RHI tariffs for new build have not been decided yet. For new build homes, an RHI tariff will be considered for the 2012 phase.

While the Renewable Heat Incentive is similar to the Feed-In Tariffs, there are some important differences, and in particular:

  • It will be paid for by the Treasury not by energy users.
  • There is no ‘National Grid for Heat’ and so importing and exporting heat is not relevant.
  • It will be introduced in phases, with residential schemes not eligible until Phase 2.

For the other types of technology, please refer to:

www.rhincentive.co.uk

How much am I owed for the energy I’ve generated?

The government is proposing to measure the generation levels of the systems. The metering method measures how much energy has been generated, and then calculates the payment owed when aligned with the relevant Renewable Heat Incentive rate.

Eligibility from July 2009

The government has also made all installations from July 2009 eligible for the RHI tariffs as they come out. If you have had a solar thermal or heat pump installation completed after July 2009 you are still eligible for payments

For more information on the Renewable Heat Incentive, please visit:

http://www.rhincentive.co.uk/

Contact us for more information