Important information regarding changes to the UK Government’s Renewable Heat Incentive (RHI) which pays participants who are using renewable energy to heat their homes are now coming into action. Depending on the technology installed, the domestic Renewable Heat Incentive pays varying tariffs per kWh over seven years.
The Renewable Heat Incentive scheme covers all of the UK (England, Wales and Scotland) and is targeted at - but not limited to - off-gas households. For homeowners wanting to benefit most from the scheme, the best green option comprises a biomass stove, solar thermal panels and a thermal store.
Each tariff sets the rate for your Renewable Heat Incentive payout. Once this is established and the rules abided by will receive the payments quarterly over a time frame of seven years. Payment rates are set by the Department for Business, Energy and Industrial Strategy (BEIS) this was formerly known as the Department of Energy and Climate Change (DECC).
2017 RHI Tariff
Renewable Heat Incentive tariffs for applications submitted systems after 01 January 2017.
How this will affect Renewable Heating Technologies
No changes for Heat Pumps and Solar Thermal
Despite speculation the heat pump and ground source incentive schemes have continued on the same rate. These methods are extremely popular so completing your installations before the end of April 2017 ensures that you will avoid the possible risk of changes to your payments afterwards.
Solar thermal also remains unchanged – so if you are considering Solar thermal as an option it could be a good time to get started now before the Summer.
Decrease for Biomass Boilers
Biomass boilers are the only reduced Renewable Heat Incentive tariff as seen on the comparison chart. This equals a 10% reduction, which started at the beginning of January. Anyone considering installing a boiler should take these changes into account.
The future of Renewable Heat Incentive in 2017
Another announcement will be made on 31st March 2017. In 2016 there were changes made regarding the amount of support of solar thermal systems and allocation to heat pumps, third party ownership and also heat demand capping. However, The RHI will continue to support and encourage the use of Air and Ground Heat pumps, Biomass Boilers and Solar Thermal.