A world first: get paid to generate heat energy

 

The Renewable Heat Incentive (RHI) is a world first, designed to help the UK meet our carbon reduction targets by incentivising renewable heat. The scheme is divided into two parts for domestic and non-domesticinstallations, with the domestic part to launch in spring 2014. In the meantime there is a rebate scheme known as the Renewable Heat Premium Payment (RHPP) that is available for homeowners. Much like the Feed-in Tariff for renewable electricity systems, the RHI will pay generators of renewable heat (such as Solar Thermal) for the energy they produce.

 

Domestic

 

How much will be paid?

 

When the scheme begins in 2014, homeowners will be eligible for a rate of 19.2p per unit of heat produced for a period of 7 years and anyone who has had a system installed since the 15th July 2009 can apply. Is my installation eligible?As above, if you’ve had (or are going to have) a solar thermal installation since July 15th 2009 with MCS accredited installers and components then you are eligible. You will need an MCS certificate and must have a Green Deal Assessment before applying and any public grants, such as the RHPP will be deducted to avoid double subsidies.

 

How are payments calculated?

 

Payment for solar thermal systems under the RHI will be based on the performance estimate completed as part of the installation process. Therefore, you will be able to know exactly how much you will be paid each year as soon as you receive your quote.

 

Non-domestic

 

How much will be paid?

 

The current rate for Solar Thermal is set at 8.5p per kWth and is inflation linked. Payments will continue for 20 years from the sign up date. This may not seem like a lot but it should enable generators to be paid back their initial costs in as little as 6 years, depending on how the energy is used on-site and the system design.

 

Is my installation eligible?

 

There are eligibility criteria. For Solar Thermal they are:

 

 

• The installation is under 200 kWth;

 

• The installation was completed from July 2009 onwards;

 

• The heat generated is being used for eligible purposes – i.e. heating space, heating water or carrying out a process where heat is being used in a building;

 

• No grants or public funding has been received in lieu of capital costs (grants can sometimes be paid back);

 

• The installation was new when it was commissioned at the site. Only MCS or Solar Keymark approved products and only MCS accredited installers are eligible.

 

 

How are payments calculated?

 

Metering will be set up to calculate how much you are owed and you will have to provide quarterly meter readings, maintenance records and details of system changes to OFGEM, who are administering the scheme.