Renewable Heat Incentive

The Renewable Heat Incentive (RHI) is a UK Government scheme.

Renewable Heat Incentive (RHI)

The Renewable Heat Incentive (RHI) is a UK Government scheme set up to encourage uptake of renewable heat technologies amongst householders, communities and businesses through financial incentives.  It is the first of its kind in the world and the UK Government expects the RHI to contribute towards the 2020 ambition of 12% of heating coming from renewable sources.  In 2012, phase one of the Renewable Heat Incentive (RHI) launched to support the UK’s non-domestic sector. The domestic RHI, was launched on 9th April 2014 and provides financial support to the owner of the renewable heating system for seven years.  The scheme covers England, Wales and Scotland.  New regulations came into effect on 22 May 2018. For information on what the Government changes mean for you, please see Ofgem webpage changes to the scheme.

What Technologies can I claim RHI Support for?

  • Biomass (Wood Fuelled) Boilers
  • Biomass pellet stoves with integrated boilers providing space heating
  • Ground to water heat pumps
  • Air to water heat pumps
  • Solar Thermal panels (Flat place or evacuated tube only) providing hot water for your home

Air to air heat pumps, all log stoves, pellet stoves without back boilers and hybrid PVT are not supported by RHI.

Who can apply for RHI?

Owner-occupiers, self-builders, private landlords and registered providers of Social Housing who have installed an eligible technology since 15th July 2009 can apply for RHI support (provided they meet eligibility criteria). Single domestic dwellings are also covered.RHI support is not available to new build properties (other than self-build projects).The Domestic RHI is separate to the Non-Domestic RHI, and it is clear cut for most people which one applies. You can apply for the Domestic RHI if your renewable heating system only heats a single home for which you have a domestic energy performance certificate (EPC). The Non-Domestic RHI is for those who have renewable heating systems in commercial, industrial or public premises.

RHI Example

The starting point for your renewable heating system is to contact Read & Errington to arrange your Free Survey for your home or business. Our experienced team will provide you with the design of your new system and give any advice you may require.

Define your heat load

After the completion of the Free Survey, if you wish to proceed, Read & Errington will arrange for a Green Deal Assessment and Energy Performance Certificate (EPC) to be completed on your property. This Certification is the proof OFGEM needs to prove that your property is assessed as a domestic ‘dwelling’. Without one you can’t apply for RHI and won’t be able to join the scheme. The Green Deal Assessment will ensure that your property meet the minimum loft (250mm) and cavity or solild wall insulation requirements, where appropriate. From the Green Deal Assessment, an Energy Performance Certificate (EPC) is issued as proof of measures having been made and define the heat demand for the property.

Payback

Domestic RHI payments are calculated based on unit payments of 8.93p per kilowatt hour (kWh). The EPC for the property is calculated based on the heating being on for 1,314 hours of the year with allowances made for levels of loft and cavity wall insulation.So, to calculate the size of biomass boiler your property needs, you divide the EPC value by 1,314. To calculate your payments, you multiply the EPC value by 8.93p per kWh.To put this into context, we have developed the following worked example to give you an idea of the cost of installing a biomass boiler and the RHI payments you can expect. The figures are all index linked to inflation.

EPC Heat Demand

60,363 KWH

Cost of Project

£26,000

RHI Payback per KWH

8.93 PP/KWH

RHI Payments over 7 Years

£41,305

Estimated Returns *

£15,386 *

Whatever your requirements, Read & Errington carry out a Free Comprehensive Survey with each renewable energy quotation recommending the best possible solutions on an individual basis. Contact Us today for a no-obligation Quotation.

Is Biomass suitable for my home?

Biomass is particularly suitable for homes in off-mains gas areas and is a cost effective alternative to other fuels, such as oil, LPG or electricity. However, it may not be suitable for all homes, therefore we have comprised the following questions:

Do you have enough space for the Biomass Boiler?

Biomass boilers are generally larger than conventional boilers, thus needing more space. Commercial installations will require plant room space similar to conventional gas and oil counter parts. Although domestic installation generally are smaller, significant space is required for the boiler, buffer store and fuel store.

Do you have enough storage space?

You will also need somewhere dry to store the wood pellets it burns for fuel, or space for an all-weather storage bin which can be sited either inside or outside. Ideally this should be close to where the fuel is delivered, remember that you will have to carry the bags of pellets from the storage area to the boiler, when it needs replenishing.

Do you have a suitable Flue for the boiler?

You need a vent which is specifically designed for wood fuel appliances, with sufficient air movement for proper operation of the stove. Your existing chimney can be fitted with a lined flue which is relatively inexpensive.

Do you need Planning Permission?

Not for the Biomass boiler but you may require planning permission for the flue if you live in a conservation area or own a listed building.

Do you live in a Smokeless Zone?

If so then wood can only be burnt in certain exempted appliances you can check on: UK Smoke Control Areas.

Who will install your Biomass Boiler?

If you want to apply for the Renewable Heat Incentive Scheme (RHI) or other financial assistance towards the installation of a Biomass boiler, it must be installed by an Microgeneration Certification Scheme (MCS) qualified installer. MCS is an internationally recognised quality assurance scheme. It demonstrates that products are manufactured to a high quality and that installers are committed to meeting rigorous standards. Read & Errington is a MCS Qualified Installer.Whatever your requirements, Read & Errington carry out a Free Comprehensive Survey with each Biomass installation recommending the best possible solutions on an individual basis. Contact Us today for a no-obligation Quotation.