Rates, Eligibility & Tariff levels

The Renewable Heat Incentive (RHI) is one of the many schemes that are now running throughout Europe and around the globe with the aim of tackling climate change and making energy consumption and production far more efficient.

There are similarities between the RHI and the electricity feed-in tariffs, although to call the two identical would be reductive and unhelpful. The RHI will be kick-started in October of 2012 and there will be a wide range of people eligible to make a claim under the new scheme.

There are several types of renewable heating sources that are recognised under the RHI, including solar panels which extract thermal energy from sunlight; wood and other biomass burning boilers; and even heat pumps. If you have an eligible heating system installed in your property then you will be able to move onto the second stage, which involves calculating roughly the amount of heat that will be generated by your property’s renewable energy system. Once this has been determined, you will receive a payment in line with the calculations.

It is important to note that the level of the payment you receive is fixed based upon the estimate rather than retrospectively applied after a set term of usage. It is also important to remember that the RHI is theoretically open to any individual or organisation interested in helping the planet and saving money on their bills at the same time. There is thus the opportunity for whole communities to harness the power of the RHI and to become independent from gas and oil.

Depending on the type of renewable heating system that you use, you could get up to 18 pence for every kilowatt hour of energy that you produce to heat water and to heat your property. The precise reward will depend on the type of system that is in use, with regulator Ofgem set to act as the administering body in the case of the RHI.

3 Comments

  • F W OLIVER 3rd February 2011

    Having had a two panel standard system fitted since August 2010 it would be nice if someone other than the installer would give confirmation of the basic annual sum to be paid, subject to a, b, c, etc. and also confirm how the initial claim has to be lodged To assist the public I suggest that a simple statement be needed on the “completion certificate” to state a figure that will be the base of the annual kilowatt hour capability of the system purchased /leased and installed.All a purchaser then would have to do is a simple muliplication from the first year RHI.eg.2250kwh class @18p=£405 and update periodically.

  • Martin Kotchie 23rd March 2011

    I had a domestic Solar Hot Water System installed in May 2010 together with a PV system. I have been receiving a FIT for the PV system. At the time of installation the FIT for the Hot Water System was due to commence April 2011. I notice that the article above now talks about October 2012 to be kick started by RHI (?). This is 18 months later than planned last year. I really think it’s about time those of us who have invested in these systems as encouraged by Government get payment sooner than 2012. If earlier than 2012 is not possible then I seriously believe the FIT for Solar Hot Water is backdated to the installation date with interest. In addition it should be made clear when and how application is to be made.
    Best Regards
    Martin Kotchie

  • Alan chumley 10th February 2012

    I agree with Martin above, it seems that any useful information on FIT for solar is deeply buried. We have had a PV and solar installation installed and currently receive Feed in tarif from Scottish and southern as our current supplier OVO cannot offer this service. We were under the impression that feed in tarif would start in April 2012 for our hot water system but now it seems October 12 in now expected. It would be useful if definite information could be posted clearly to encourage those considering new systems, or those with existing systems to know what exactly is happening.

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