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. It is designed to reduce CO₂ emissions across the UK and reduce our dependance on traditional fossil fuels, including oil and gas.

Latest Update

Consultation on the Renewable Heat Incentive (RHI) Update following the 20 October 2010 Spending Review announcement

On 20 October 2010, as part of the Spending Review, the Chancellor announced that the Renewable Heat Incentive (RHI)will be launched in June 2011.We remain committed to the ambition of moving from 1% to 12% of all heat generated from a renewable source by 2020 and the introduction of the RHI represents over £850m of investment over the Spending Review period.

Following the February consultation and in light of the Spending Review announcement, DECC will now consider further the operation of the scheme including RHI tariffs and technologies supported. We expect to speak to stakeholders in the next few weeks ahead of announcement on the detailed design of the scheme before the end of the year.

Please refer to the table below for a list of the proposed Tariffs.

Renewable Heat Incentive Tariffs

Small Installations (up to 45kW)

Medium Installations

Large Installations

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 Biomass, Solar Thermal & Heat Pump installations performed by Anglia Easy 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.

The payments under the RHI should result in a 12% rate of return.  This is higher than for feed in tariffs for the following reasons

• The UK needs high growth rates for renewable heat technologies
• There can be a “hassle factor” involved in fitting some technologies (e.g. digging up a trench in the garden for the heat exchanger for a ground source heat pump) – the payment covers these costs and compensates users for overcoming any of these non-financial barriers.

RHI  does not support domestic woodburning stoves or open fires.
How much renewable heat will the RHI deliver and who pays?
The UK’s renewable heat industry currently makes up just 0.6% of the UK’s heat market.  Under our European renewable energy target of 15% renewable energy by 2020,  the RHI proposals launched today anticipate de-livering 12% of the UK’s heat from renewables by 2020.  Electricity is expected to contribute around 30% and transport biofuels 10%.

It is proposed that the scheme will be paid for either through general taxation or by raising a levy from sales of gas and other fuels used for heating.  This will be consulted upon.

What is the purpose of the RHI?

For the first time, the RHI will ofer a comprehensive framework of support for renewable heat in the UK.  This is urgently needed as heat is the big-gest use of energy in the UK, supplied predominantly by fossil gas.  Heat accounts for 47% of the UK’s CO2 emissions.  Across Europe the UK has the lowest contribution of renewable heat of all EU countries except Malta (on zero).  By comparison over half of Sweden’s heat energy is supplied by renewables.  The EU average is over 10%. (Eurostat).