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Energy Technology ListEnergy Savigs Trust LogoRenewable Heat Incentive (RHI) grants provided by Advanced Green Systems.

The Renewable Heat Incentive - RHI Grants

The Renewable Heat Incentive (RHI) will provide financial support for those who install renewable heating, which qualifies for support under the scheme.

RHI Grants for the United Kingdom
The Energy Act 2008 provides the statutory powers for a 'Renewable Heat Incentive' scheme to be introduced in 2011 across England, Wales and Scotland. The detailed legal framework will be set out in secondary legislation.

The Government proposes the following key aspects of the RHI
The scheme should support a range of technologies, including air and ground-source heat pumps (and other geothermal energy), solar thermal, biomass boilers, renewable combined heat and power, use of biogas and bioliquids and the injection of biomethane into the natural gas grid.

Support heating at all scales, including households, businesses, offices, public sector buildings and industrial processes in large factories.

Will the RHI Installations be Metered or the Annual Payback Estimated?
Rates of annual grant funding will probably be estimated not metered.

Tariff Levels
Tariff levels have been calculated to bridge the financial gap between the cost of conventional and renewable heat systems at all scales, with additional compensation for certain technologies for an element of the non-financial cost and a rate of return of 12% on the additional cost of renewables, with 6% for solar thermal. Please see bullet points below.

  • Biomass boilers up to 45kW will get an annual grant of 9p/kWh for 15 years.

  • Biomass boilers from 45kW to 500kW will get an annual grant of 6.5p/kWh for 15 years.

  • Solar Thermal up to 20kW will get an annual grant of 18p/kWh for 20 years.

  • Solar Thermal from 20kW to 100kW will get an annual grant of 17p/kWh for 20 years.

  • Ground source heat pumps up to 45kW will get an annual grant of 7p/kWh for 23 years

  • Air source heat pumps up to 45kW will get an annual grant of 7.5p/kWh for 18 years.

    The feed-in tariff for electricity was confirmed as being exempt of income tax. We expect the same for the RHI although this is yet to be confirmed.

    When do MCS Grant Accredited Installations Qualify for the RHI?
    The RHI should be in place for April 2011 but will include installations from the 15th July 2009. So installations carried out today will qualify for the Renewable Heat Incentive (RHI) grants if carried out or commissioned by an MCS installer like Advanced Green Systems UK.

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