The Quick Guide to the Renewable Heat Incentive

This is a brief overview to the Renewable Heat Incentive. If you want to find out even more about the RHI, visit our Renewable Heat Incentive information site: Alternatively, contact us by email.

Important update!

On October 20th, within the Spending Review, the Government finally gave the go ahead for the RHI with three important changes. Firstly it will be paid for out of the public purse and secondly, because of that, it has been reduced in scope by 20%. This means that there will be changes and we wait to hear what these will be. Thirdly, the launch date has been pushed back by a couple of months to June 2011.

All of the information on this site relates to the RHI as scoped out within the consultation document published in February.

What is the Renewable Heat Incentive?

It is a payment for generating heat from renewable sources. Like the Feed-In Tariff, it is set by Government, however where it differs slightly is that it is administered by the official regulator Ofgem on sales of fossil heating fuels and is collected by the suppliers of these fuels. However, the Renewable Heat Incentive is still for everyone – homeowners, tenants, businesses, schools, hospitals, farmers or landlords.

How much money is the Renewable Heat Incentive worth?

First of all you will save money by not having to use any gas or oil, both of which are becoming increasingly expensive year-on-year.

Secondly, you will be paid up to 18p/kWhr for the hot water and heat you generate and use yourself. It depends on exactly what systems you use and how large they are as to what the exact tariff level is.

How long do the tariffs last?

Between 10 and 23 years depending on which type of system you use. You will find information on how long each type of renewable energy systems’ tariff lasts in the table below.

Is that long enough to cover the installation costs?

Yes, is the simple answer. In fact, we estimate that most of our customers will earn enough money from the tariffs to pay off their installation costs in about seven to nine years. According to the Government, which has set the tariff levels, the average user will earn a return of around 8% per annum with higher band tax payers seeing almost doube that.

When do they start?

ariffs will be paid starting in June 2011. However, any suitable system installed from now on will be eligible for the tariffs when they begin.

Renewable Heat Incentive tariff levels