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Grant

 

Renewable Heat Incentive (RHI)

The Renewable Heat Incentive (RHI) is the new Government-backed scheme superseding the grants system from the Low Carbon Buildings Programme (LCBP), providing excellent financial pay-back for a wide range of microgeneration heat production technologies. 

Available for domestic, “non-for-profit” and commercial users, the Renewable Heat Incentive (RHI) gives owners of heat-generating technologies, including biomass, air and ground source heat pumps and solar thermal, attractive financial returns on their investment. Due to be introduced in April 2011, it is designed to reduce CO2 emissions across the UK and reduce our dependance on traditional fossil fuels, including oil and gas. Please refer to the table below for a list of the proposed Tariffs.

Renewable Heat Incentive Tariffs

Small Installations (up to 45kW)

Heat technology

Proposed Tariff (pence per kWh)

 Deemed or metered Tariff lifetime (years)
Biomass 9 Deemed 15
Air source heat pump 7.5 Deemed 18
Ground source heat pump 7 Deemed 23
Solar thermal 18 Deemed 20


Medium Installations

Heat technology

Proposed Tariff (pence per kWh)

 Deemed or metered Tariff lifetime (years)
Biomass (up to 500kW) 6.5 Deemed or metered 15
Air source heat pump (up to 350kW) 2 Deemed/ metered (optional) 20
Ground source heat pump (up to 350 kW) 5.5 Deemed 20
Solar thermal (up to 100kW) 17 Deemed 20


Large Installations

Heat technology

Proposed Tariff (pence per kWh)

 Deemed or metered Tariff lifetime (years)
Biomass (500kW and above) 1.6-2.5 Metered 15
Ground source heat pump (350kW and above) 1.5 Metered 20
 
 
All the Tariffs outlined above are index-linked to inflation to provide a secure means of financial return for the lifetime of the equipment.
 
From now until April 2011 all approved installations performed by Radical Energy will qualify for the RHI when it comes into force. Please contact us for more information on how using an eco-friendly boiler can not only save you money but earn you money. 


Renewable Heat Incentive – Worked Examples

A domestic property with an annual demand of 25,000kWh to satisfy the central heating and hot water requirements, uses a small biomass installation to achieve this. After taking into account the cost of the wood fuel, the owner would receive approximately £1750, index-linked to inflation every year for the next 15 years. 
 
A small commercial unit uses 80,000kWh of energy for heating and hot water requirements. To satisfy this demand a medium-sized ground source heat pump is utilised within the curtilage of the property. Taking into account the cost of the electricity used to run the heat pump, the business would be eligible for a net income of approximately £3250 payable every year and index-linked to inflation, This would be payable for the next 23 years.