About the Renewable Heat Incentive

The Renewable Heat Incentive (RHI) is a financial incentive, similar to the feed in tariff for solar PV, introduced by the Government to encourage you to create your own clean heat. Anyone who installs an eligible system will receive a fixed payment for any renewable heat generated.  The incentive will come into effect in October 2012 for domestic installations. 

Full details of the scheme and the requirements for qualification have yet to be announced by the government but are due to be released shortly. It is clear however, that you will need to have a well insulated house and be willing to give feedback on how well the thermal system performs in order to qualify. 

Payments are likely to be fixed for a twenty year period and guaranteed to rise with inflation. The payments you receive will probably be paid on a quarterly basis and, as there is no mechanism for measuring exactly what heat energy your solar thermal system is producing, an estimate will be made. This estimate and your resulting payment will be based upon things such as the size of your system and the size of your house.

In addition, a lump sum or an RHI premium payment of £300 will be available later this year to help cover the cost of each solar thermal system. Those taking up the premium will be eligible for RHI tariff income from October 2012, as will anyone else who has had eligible equipment installed from July 15, 2009.

For more information click here to visit the Ofgem website