Renewable Heat Incentive (RHI)

Biomass is widely acknowledged to be one of the most environmentally friendly and economical sources of heating available.

Now, there are further financial benefits to installing a biomass heating system under the Renewable Heat Incentive (RHI).

RHI is a Government scheme, which provides financial support to help encourage businesses and individuals to install various renewable heat technologies, such as biomass heating.

A total of £860 million has been set aside to fund the scheme, with the aim of reducing carbon emissions in the UK by 44 million tonnes by 2020.

The scheme guarantees regular 'tariff' payments for 20 years based on the amount of renewable heat you generate, thereby subsidising the cost of installing and maintaining your biomass system, ultimately saving you money.

If you are considering installing a biomass system, which uses wood pellets, chips or logs, you will probably be eligible to receive the new RHI payments.

This is how it works:-

• Non-Domestic buildings

  From July 2011, industrial, commercial, public sector, community buildings and multiple residential dwellings served by one renewable heating installation (e.g. district heating) that install renewable home heating can apply for the RHI - this will guarantee regular 'tariff' payments for 20 years based on the amount of renewable heat they generate and will be adjusted in line with inflation.

• Domestic buildings

  In October 2012, single private residential dwellings will be able to join the RHI scheme, as part of the Government’s 'Green Deal for Homes'.

  In the meantime, 'Renewable Heat Premium Payments' will be made available as one off payments from July 2011 to encourage take-up. Homes receiving this payment can then go on to receive RHI tariff payments from October 2012.

Non-domestic biomass installations completed and first commissioned on or after 15th July 2009 may also be eligible for the RHI, when it is introduced.

Note: Projects that receive any other form of public funding, will generally not be eligible for RHI support.

Only new equipment and the replacement of existing renewable installations will be eligible for the RHI. Converted installations will not qualify. Another condition of receiving support is that the system must also be well maintained by the participants.

Non Domestic Customers.

For non domestic customers, the RHI tariff payments will be calculated according to the number of kilowatt hours (kWh) of renewable heat you produce, which will be measured by installed 'heat meter'.

The payments will be largely dependent on the biomass tariff levels, which will be tiered, as below:-

Quarterly payments will then be made by calculating the metered number of kWh and multiplying it by the appropriate tariff.

Whatever your installation band, the Tier 1 tariff will paid until the system has operated up to 15% of the annual rated output (i.e. the equivalent of 1,314 hours at the rated capacity of the installation) and then anything over that amount is paid according to the Tier 2 tariff.

Domestic Customers.

If you are a domestic customer, you can apply for £950 per unit for biomass boiler as a one off 'Renewable Heat Premium Payment', until a set of RHI tariffs are applied to residential premises in October 2012. After that, you will be eligible for quarterly tariff payments.

As one of the most experienced specialists in biomass technology, Asgard Biomass can take care of all aspects your biomass system and can also help you take advantage of this attractive financial incentive.

We design and install bespoke biomass systems for all manner of large residential, agricultural, commercial and industrial applications. With our in house manufacturing facility, we can deliver innovative and cost effective solutions, tailored to your precise requirements, ensuring you get the best long-term return on your investment.

In order to benefit from support under the RHI tariff, your installation will have to be accredited by Ofgem (the Gas and Electricity Market Authority), who will be administering the scheme.

Once full details of the scheme are published, we will be pleased to advise you on RHI eligibility criteria and the obligations of the participants.

If you are thinking about installing a new biomass system and would like to know more about how to benefit from the Renewable Heat Incentive, please contact Ross Donovan at Asgard Biomass on: 01767 318975. Fax: 05601 127429.

or use our Contact Form.