Funding
Biomass Boilers are eligible for the Renewable Heat Incentive (RHI).
The RHI is very similar to the FIT (Feed in Tariff) scheme for renewable electricity; however the RHI only applies to technologies that generate renewable heating.
The purpose of the RHI is to encourage take-up of renewable heat technologies that are typically more expensive to install and run than traditional fossil-fuel heating systems.
The Government implemented the RHI cash incentive scheme means you will be paid quarterly on the total amount of renewable heat generated, which is expressed in kilo watt hours (kwh).
Definition of Commercial / Domestic sectors
“…where a renewable heating installation serves a single private residential dwelling only. This does not include multiple residential dwellings served by one renewable heating installation (e.g. district heating) nor residential dwellings which have been significantly adapted for non-residential use. For example, a house where someone works or runs a business from home would be considered domestic whereas a house converted to be a shop or bed & breakfast would be considered non-domestic. This means that if a company, private landlord or registered social landlord installs single renewable heating units, in one or multiple residential dwellings, this would constitute a domestic installation.”
Included Technologies
Only technologies that fall under the Microgeneration Certification Scheme (MCS) accredited, and installed by MCS accredited installers, will be eligible for the RHI payment.
- Ground Source Heat Pumps.
- Solar Thermal
- Biomass Boilers
- Air Source Heat Pumps are not included for commercial but are included for domestic.
- Biogas.
- Biomethane
- Bioliquids
- Combined Heat and Power (CHP
Wood burning stoves, air convection heaters and open fires are not included under the RHI scheme.
The MCS accreditation scheme was implemented to ensure that purchasers of energy systems are covered under OFGEM’s Code of Conduct and Consumer Protection policies.
Tariff Rates
Non Domestic Renewable Heat Incentive (ndRHI)
You receive a guaranteed 20 year, index linked payment.
The payment is based on the size of the boiler multiplied by the run time of the boiler which is metered, multiplied by the ndRHI rate.
Boiler Size 72kW
Current ndRHI Rate 6.8p per kW hour
Run Time 1,314 hours
Annual RHI Payment = £6,790
Plus your expected fuel savings of 40%.
Two Tier Payment
A boiler will typically run at peak load for 15% of the year – this equates to 1,3,14 hours.
In order to avoid fraudulent claiming by letting a boiler run 24/7 Ofgem put in place a cap.
The ndRHI will pay a higher rate of 6.8p per kW hour for up to 1,3,14 hours and thereafter a rate of 1.8p per kW hour. With pellet typically costing 4.2p per kW this stops fraudulent profiteering.
Domestic RHI (dRHI)
You receive a guaranteed 7 year, index linked payment.
The annual dRHI payment is derived by an independent Domestic Energy Advisor (DEA) undertaking a Green Deal Assesment.
The assessment determines the kW hours a household will use in a year for heating and hot water. The kW Hours figure produced is simply multiplied by the dRHI rate and that is the amount paid per annum.
Annual kW hours 55,000 (generated from Green Deal Assessment)
dRHI Rate 10.98 per kW hour
Annual RHI Payment = £6,039
How to Apply for the Renewable Heat Incentive
To apply for the RHI is very simple. You need to do contact a Microgeneration Certification Scheme (MCS) accredited installer should undertake a full survey and recommend a suitable renewable energy technology for you and complete the installation for you.
You need a MCS certificate and a Green Deal Assessment Certificate. Then simply apply online.