Renewable Heat Incentive

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What is the Renewable Heat Incentive (RHI)?

A scheme which pays for the amount of heat you generate from renewable sources and that of course includes biomass.

Who is eligible?

Individuals, community groups and businesses.

I like the idea. When does it start?

It should kick off in April 2011 but there is a consultation period before then when details and prices will be finalised. However if you have had an installation commissioned since July 2009 you could be eligible from that time.

How much could I be paid?

That depends on the size of your installation. See the table below.

Size of installation Price (pence per kilowatt hour – pkWh) Calculation by
Less than 45kW 9p Deeming
45kW-500kW 6.5p Deeming or metering
Over 500kW 1.6p – 2.5p

metering

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What is deemed?

This is basically a set payment based on the size of the equipment and the type of property you have. A calculation has been made as to how much heat you will produce over the year. There is no obligation to have a heat meter unless you have you a large installation.

What’s a heat meter?

Something that measures heat used rather than heat produced.

So I’ll just get an annual payment?

You’ll have to prove that the equipment is still operating and being maintained, but essentially yes. If you have a heat meter, payment will be based on the meter reading. You’ll get the payments for a set number of years, currently it’s looking like 15 years.

Can I install one tomorrow in advance of scheme finalisation?

You could but you’ll have to use an installer registered under the Microgeneration Certification Scheme (MCS) or equivalent for schemes under 45kW. For larger schemes, it’s a bit vague at present but will be finalised before the scheme starts.