Renewable Heat Incentives

Following on from my Feed In Tariffs Blog (see April 2010 Blog Archive on the right), we now have a further Incentive Scheme under consultation and to be introduced in April 2011 called the Renewable Heat Incentives (RHI).

Unlike the Feed In Tariffs scheme which is designed predominantly around paying you to generate electricity, the RHI scheme is designed to reward homeowners for installing Renewable Heating technologies with an annual payment for the expected life of the product.  The payment is predetermined based on typical output at a typical kWh rate.  For example a Solar Panel which provides hot water has a life expectancy of 20 years and may produce around 2200 kWh per annum at a deemed rate of 18p making an annual payment of £400 for 20 years.  Unlike the Feed In Tariffs scheme there will be no metering of actual units produced for this scheme.


The scheme also covers technologies such as Solid Biomass Boilers (15 years @ 9p per kWh), Ground Source Heat Pumps (23 years @ 7p per kWh), Air Source Heat Pumps (18 years @ 7.5 kWh).  Payments to be inflation linked and tax free.

All installations must be Microgeneration Certification Scheme approved as per the Feed In Tariffs.

All of this is still under consultation so could change before April 2011 but it is looking like a very attractive scheme for Homeowners at the moment. More information on the RHI scheme