Intro to the Renewable Heat Incentive

In Britain heat is the biggest user of energy, with 60% of your energy bills covering the heating of space and hot water. In fact, heat also accounts to nearly 50% of the country’s CO2 emissions.

This is one of the reasons why the Renewable Heat Incentive (RHI) was created, to help encourage the uptake of renewable heat technology in the UK.

By 2020 the Government are planning to increase heat from renewable sources from 1% currently to 12% in six years’ time. The RHI will be a huge factor in achieving this goal and you may find it a fantastic option for your home.

The domestic RHI

The RHI for domestic installations officially opened on April 9, 2014 after 18 months of speculation. Technology dated back to July 15, 2009 is eligible. Tariff rates have been attached to the different renewable heat technologies and stand as follows:

  • Air source heat pumps 7.3p/kWh
  • Biomass boilers and biomass pellet stoves with back burner 12.2p/kWh
  • Ground and water source heat pumps 18.8p/kWh
  • Solar thermal technologies 19.2p/kWh

What’s important to remember though, is that for your installation to be eligible for the RHI it needs to be MCS certified and installed by an MCS accredited company too. The Microgeneration Certification Scheme ensures everything is in accordance with Government regulations.

If you decide you want to take advantage of the RHI and earn thousands of pounds over a seven year period, you’ll first need a Green Deal assessment to calculate how energy efficient your home is. Although this will cost around £150, consider this to the earnings you’ll achieve.

Of course, by taking the assessment, you’re halfway to suring up your home’s efficiency and could even take part in the scheme to upgrade your insulation at the same time.

Once you have been accepted onto the scheme, payments are made quarterly for seven years. This payment is calculated by the amount of kWh of heat that’s produced. This will either be estimated or your system will be fitted with a recorder.

Don’t forget, once you have had the technology fitted you need to be issued with an MCS certificate. This is now law and the company must provide you with the correct certification. Also, included in the original quote, the company may also submit the technology to the RHI scheme on your behalf. So you simply just need to sit back and watch the money rolling in.

The RHI is similar to the ever-popular feed-in tariff for solar panels, which has been in force since 2010. As with this scheme, rates for the RHI could decrease over the years so if you’re considering renewables, act quickly to avoid missing out on the lucrative payments.


Facts & Figures You’ll Love To Share

  • As many as 26,000,000 homes in the UK could be eligible to receive Green Deal funding.
  • Green Deal loans are paid back over a 10-25 year period with the payments taken from energy bill savings.
  • Using the Government’s Green Deal you can upgrade your boiler, improve insulation and replace windows for no upfront fee.
  • The Green Deal’s Golden Rule states that homeowners won’t pay back more than the savings they make on energy bills with improved efficiency.

Evy Coe

Evy works for Quotatis as a Content Marketing Executive. She loves to write about interior design and help homeowners with their DIY projects.

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