Renewable Heat Incentive (RHI)

The Renewable Heat Incentive- FAQs

SOLARFOCUS equipment and Oxford Renewables installations benefit from the government’s Renewable Heat Incentive. The aim of the incentive is to deliver government carbon reduction commitments and improve energy security while delivering an attractive return on investment for end users.

There are two programmes, one for the domestic and another for the non-domestic or commercial sector. To find out how you can save money on fuel and generate revenue by installing a biomass and solar-thermal system, please have a look at the frequently-asked-questions below.

This is a guide only. Please call 0118 984 1753 for more information.

What is the Renewable Heat Incentive?

The Renewable Heat Incentive(RHI) is a government programme designed to help households and businesses finance and adopt environmentally sustainable forms of heating. The terms are established by the Department for Energy and Climate Change(DECC) and the programme is administered by OFGEM.

Is the Renewable Heat Incentive available for homes?

Yes. All of the following homes are eligible: owner-occupiers, private landlords, social houseing providers, self builders, third-party owners, legacy owners back to 15/06/09.

The time to have your home assessed for wood fuel and solar thermal energy feasibility has arrived. The combined impact due to lower fuel bills and revenue generated via the RHI will enable the payback to occur in less than 7 years. Please get in touch via the contact form below.

What should I do if I have already installed a biomass or solar thermal system at my house?

What does MCS accreditation mean?

The Microgeneration Certification Scheme(MCS) is the scheme set-up by government to ensure that domestic installations of renewable energy systems are properly installed and give value for money. MCS will play a central role in the domestic RHI, ensuring the high quality of installations and providing consumer protection. All installers and products (up to 45kWth) must be MCS certified to be eligible for RHI funds.

What is the Green Deal Assessment(GDA)?

The GDA is the government programme to help home owners to understand how they can improve the energy efficiency of their homes and what technologies they can access with financial support of through the RHI. Of the measures recommended in the GDA, only loft insulation to 250mm, and cavity wall insulation, must be carried out.

Will I need a heat meter?

All NEW installs must also be “meter-ready” in case chosen for compulsory monitoring. This will not apply to legacy installations.

In addition, owners may choose to buy a “Metering and Monitoring Service Package”(MMSP) from installer, a kind of service package with meters and remote monitoring. If you choose this scheme, you will be paid an extra £200 per annum.

Are there any special arrangements for solar thermal installations?

  • Solar Thermal systems are always deemed, on the estimated contribution of the ST to the property’s hot water demand, calculated as part of the MCS process and shown on the MCS Certificate.
  • If biomass and solar thermal are used together, there are two claims and both receive full deemed amount.

What are the end user’s responsibilities?

  • Systems must be declared to be working, and maintained to manufacturer’s instructions.
  • There is a “fuel sustainability requirement”, to buy and record fuel used from a registered supplier. Self-supply(e.g. own logs) are likely to be exempt. “Local suppliers” may have a simplified system.

Is the Renewable Heat Incentive available for businesses?

Yes, the scheme has been running since November, 2011. Thousands of biomass heating systems have been approved and millions of pounds have been paid out.

Are biomass and solar thermal technologies supported by the RHI?

Yes, biomass and solar-thermal energy are two forms of renewable energy that are supported by the RHI. There are several benefits to switching to renewable energy, the first and foremost of which is that you will save money.

What are the key benefits of biomass heating with the RHI?

  • Biomass energy is generally cheaper than oil, LPG or electricity whose prices are increasing year on year.
  • The RHI provides a 20 year income stream via tariffs that will, over the course of the years, cover the expenditure of the biomass system itself. Generally a 12%-20% annual rate of return is achieved by those installing renewable energy systems.
  • Systems under 200kW also benefit from an average tariff income of £100 per kW installed capacity annually.
  • Reduced carbon footprint and emissions – lower your impact on the environment and take a step towards future proofing your home.
  • Helps your business to become more self sufficient.

What are the tariffs paid out by non-domestic RHI for biomass and solar thermal?

Biomass has a two tariff system for systems up 199kW. Tier 1 is paid until the system has operated for 1,314 hours. After that, the Tier 2 payment is allocated for the rest. Current tariffs are:

  • Tier 1 tariff- 4.41p/kWh
  • Tier 2 tariff- 1.17p/kWh

Contact us about the Renewable Heating Incentive

It’s important to plan ahead to ensure you get the best deal from the Renewable Heat Incentive, so if you require any assistance or information please don’t hesitate to get in touch with us – we are here to help. Simply give us a call on 0118 984 1753, or leave your details on our contact us page and we’ll reply as quickly as possible.

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