The Renewable Heat Incentive (RHI) scheme

Financial incentives for Renewable Energy schemes

 As well as helping our clients’ understand the range of renewable electricity generation schemes that are eligible for financial incentives, we can also provide a full range of financial support services to assist with any investment decision. These include Raising finance, Accounting and Audit, Tax, VAT and Corporate Finance.

The Renewable Heat Incentive (RHI) scheme

The Renewable Heat Incentive (RHI) Scheme is an enticement for anyone considering purchasing a biomass boiler.  The government RHI scheme provides continuous financial support to the owner of a biomass boiler quarterly over a 20 year period for the first phase. The RHI scheme is likely to remain open until 2020.

The RHI scheme is being introduced to focus people’s attention to renewable energy such as biomass and away from fossil fuels such as oil. Biomass fuels include woodchip, wood pellet, logs, grain, cereals, and energy crops such as miscanthus.  The RHI scheme makes a payment under a tariff system dependant on the type of technology used along with the amount of kW’s consumed. 

The first phase for the non-domestic sector commences in July 2011, and the RHI scheme is to apply to equipment installed as far back as the 15 July 2009.  However, if the installation did receive an installation grant then they will not be eligible for the RHI scheme. The first phase payments are via metered generation. The RHI scheme will be administered by Ofgem www.ofgem.gov.uk and they will decide whether an installation is eligible. 

The second phase for the domestic sector is to be introduced in October 2012.  A domestic installation is classed as a single domestic house/flat, whereas a non-domestic installation includes   boilers that heat more than one property. Second phase payments will only commence from the date of the start of the second phase not the date of installation.  Installations that may apply for the RHI scheme second phase are installations from the 15 July 2009.

The Department of Energy & Climate Change (DECC) has stated that “Once an installation is accredited under the scheme they will receive a fixed level of support which will be adjusted annually in line with inflation. However, to ensure the scheme is cost effective the tariffs are likely to change over time and the new tariffs may be applied to anyone joining the scheme”. The scheme requires that installations under 45kW have Microgeneration Certification Scheme certification (MCS).  MCS certification is to reflect that the company will provide an installation to a high standard. 

Please also see our information on the Feed-in Tariff (FiTs) scheme.

For more information, help or advice on any renewable energy query you may have, please contact us  or call 01392 258553 or 01395 279521 to find out what we can to do to help you.

This information has been written for general interest.  It provides only an overview of the regulations in force at the date of publication. It is therefore essential to take advice on specific issues.  No responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this leaflet can be accepted by the firm.

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We would like to thank TRECO Limited for their help in compiling the information on the RHI scheme. TRECO is MCS accredited and is the sole distributor in the UK for the Guntamatic range of boilers, which are available under the RHI scheme. For further information and to discuss the benefits of their range of Guntamatic boilers call TRECO on 0845 130 9012 or Email: Glyn Charles at Glyn.Charles@treco.co.uk  or visit:  www.treco.co.uk