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The Renewable Heat Incentive (RHI) Scheme

Money back for every kW of renewable energy you create

Under the Renewable Heat Incentive [RHI] scheme, launched in 2011, energy providers will pay energy users for each kW of renewable energy they produce. This pioneering Government scheme is intended to encourage the use of renewable, low carbon energy, and has been subject to some changes and updates in order to fine tune the initiative. If you install or already use eligible, renewable heating technology in your home or business, you could receive quarterly cash payments for 7 years.

There has been a definite increase in demand for renewable heating system installations, since the scheme was introduced, in particular, air source heat pump technology. The RHI scheme, was introduced in order to support and reward users of renewable energy, and updated sustainability requirements will come into effect on 5 October 2015. Both non–domestic and domestic systems are eligible to benefit from this scheme and it is hoped that the RHI will contribute towards targets of 12% of all heating coming from renewable sources by 2020.

Renewable Heat IncentiveRenewable Heat Incentive Scheme – 2 Phase Roll Out

The RHI scheme was introduced in two phases.

Phase 1, long-term tariff support was targeted in the non-domestic sectors. This primarily affected the larger heat users - industrial, business and public sector – which contribute almost 40% of the UK’s carbon emissions.

Phase 2 saw the RHI scheme extended to households, as they moved to the same form of long-term tariff support offered to the non-domestic sector in the first phase.

There are three steps towards benefiting from the RHI scheme:

  • Step 1. Installation of your air source heat pump or other renewable heat system.
  • Step 2. Establish how much heat is being produced by your renewable energy system.
  • Step 3. Receive your payment based on output, and the system size and technology type.

The more efficient your renewable energy system is, the more money you will be able to claim.

RHI Scheme Non-Domestic Eligibility, Air Source Heat Pump Criteria

Certain criteria must be met in order to qualify for the Non-Domestic RHI such as:

  • The installation must be owned by the applicant, and proof of identity and bank details provided and verified. If there are multiple owners the applicant must seek and provide permission to act on behalf of the others.
  • The renewable heat system technology must be eligible with regard to type and size.
  • To be eligible, system installations must have been completed and the plant first commissioned on or after 15 July 2009, including Solid Biomass, Solar collectors, Ground and Water Source Heat pumps, Geothermal, Biogas below 200kWth and Energy from Waste.

To have RHI eligibility some technologies need to have been first commissioned on or after 4 December 2013. These are Air to Water Heat Pumps, Biogas 200kWth and above, and a CHP system which generates heat from either solid biomass, biogas or waste in combination with any other source of energy.

In the case of Air Source Heat Pumps the criteria includes:

  • The production of heat by the process of absorbing energy stored in the form of heat in the ambient air.
  • Must not be designed to provide cooling or to utilise heat which has been expelled from a building or from a process that produces heat.
  • Must present a CoP of at least 2.9.
  • Must have a design SPF of at least 2.5.
  • Electrical input to the heat pump system must be measured.

Installations which are less than or equal to 45kWth require fulfilment of MCS certification

Financial Incentive for Installing Renewable Home Heating Technology

Households, businesses, hospitals, care homes, farmers, landlords, schools and more are all benefiting from the RHI scheme. Attractive returns for homeowners mean ultimately slashing fuel costs as well as making a difference to the environment.

A number of small clarifications and adjustments have been made to the scheme in recent months, details of which can be found on websites such as the Energy Saving Trust.

RHI – Invest in Mitsubishi Electric Heat Pump Systems

Installing Mitsubishi Electric air conditioning and heating systems will not only help companies to achieve renewable energy targets, they will also reduce running costs and help companies meet their carbon reduction targets. See details of the Mitsubishi RHI programme here on this link to the Mitsubishi website.

Mitsubishi Electric’s advanced heat pump systems will become even more viable, as they will earn users money back for every 1kW of renewable energy they produce.

Renewable Heat Incentive Scheme

The success of this scheme for domestic customers, is evident after a recent government announcement regarding tariff rates, which are due to be increased in spring 2017. The Department for Business, Energy & Industrial Strategy (BEIS) has published a response to the announcement, with increased rates for 3 of the eligible renewable heating technology types. New air source heat pumps [ASHP], ground source heat pumps [GSHP] and biomass systems are eligible after 14th December 2016. Applicants can take advantage of the new rates once they come into force.

New Tariff Rates

Biomass – Current: 4.21p Uplifted: 6.44p
Air Source – Current: 7.51p Uplifted: 10.02p
Ground Source – Current: 19.33p Uplifted: 19.55p

Heat Demand Limits

Heat demand limits are to be introduced to the domestic RHI scheme by the BEIS, meaning that financial support received by participants yearly will be limited. These limits are as follows: -
ASHP: 20,000kWh
GSHP: 30,000kWh
Biomass: 25,000kWh

There will be no heat demand limit for solar thermal.

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Renewable Heat Incentive Scheme RHI Started July 2011. Government Incentive Scheme for Generating Renewable Low Carbon Energy. Energy Providers Pay Energy Users for Electricity Generated, Home Generation. Renewable Home Heating Systems. Phase 1 Renewable Heat Premium Payment. Phase 2 Households, Domestic. Mitsubishi Electric Advanced Heat Pump Systems, Renewable Energy, Reduced Running Cost & Carbon Reduction Targets. RHI Return on Investment, ROI 12%.

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