Many people ask, ‘What is the RHI?
The RHI or Renewable Heat Incentive, is a government backed scheme designed to encourage the use of renewable technologies such as wood boilers, in both the Domestic and Commercial Sector. The RHI will provide finance in the form of a tariff scheme, which will be paid for up to 20 years in commercial and 7 years in domestic.
RHI for domestic
Both the products and the installer will have to be certified under the Microgeneration Certification Scheme (MCS) and there will also be an energy efficiency requirement to ensure that the property’s heat demand is reduced as much as possible. In terms of the amount of money you receive through the RHI then this will depend on two factors:
- Each technology has its own tariff (p/kWh)
- The total renewable heat demand will be based on a deemed (assumed) figure for the year based on property type.
Multiplying this deemed figure by the technology’s tariff rate and the heat demand figure will calculate your annual payments. These payments will be paid to you quarterly by the energy regulator Ofgem.
Please see the online tool below for a calculation:
For example a detached house* with a biomass solution would receive £400 per quarter (£1,600pa) over 7 years for a total of £11,200, at a tariff rate of 10.98 pence / kWh.
*Calculation assumptions: Built 1991, 4 Bedrooms, 15mm loft insulation, Insulated cavity wall, March 2015
RHI for commercial
With the recent introduction of the government backed RHI (Renewable Heat Incentive) scheme, it has never been a better time for business / commercial enterprises to invest in renewable energy. Typically a business or commercial enterprise, by taking advantage of the RHI, can not only reduce their Carbon footprint, but expect to receive a return on investment within as little as 3-5 years.
All businesses and sectors can benefit from the RHI scheme, hotels, restaurants, agriculture, retail, public sector and more.
Mibec Thermal Solutions can help with the specification, installation and application process. Please feel free to email or call our support department on 0330 053 8880 where one of our trained advisers will be happy to help.
For more information on RHI please visit the following websites:
Energy Saving Trust: