Archive for the ‘Renewable Heat Incentive’ Category

Widened scope could be more attractive for business

The Renewable Heat Incentive (RHI) for non-domestic users is set to include increased tariffs for some technologies according to the Climate Minister, Greg Barker.

BusinessGreen reported that the scheme could be broadened to include combined heat and power systems, air-to-water and air-to-air heat pumps, anaerobic digestion, geothermal and a number of waste-to-energy technologies.

At the moment the RHI covers only solid biomass, ground-source or water-source heat pumps, solar thermal, deep geo-thermal and bio-methane injection and biogas combustion.

The prospect of  wider range of technologies should be good news for businesses looking at on-site generation.

The RHI aims to do for renewable heat technologies what the Feed-in-Tariff does for photo-voltaic panels: rapidly increase the installation of domestic and non-domestic on-site generation through the provision of financial incentives. The RHI is the key element of the government’s heat strategy, which aims to reduce greenhouse gas emissions and meet climate change targets.

Is it worth it?

Payments, which are spread over 20 years, are dependent on the type of technology, the amount of energy generated and how much energy you use (see table).

Payback periods depend on a number of factors, including, for instance, the fuel being replaced: replacing oil with an RHI technology has a shorter payback (potentially 3 years) than mains gas (5+ years). The cost of installation and maintenance will also vary, particularly retrofitting an older building.

For more information check out the Ofgem Renewable Heat Incentive guide.

Key eligibility criteria include

  • The installation is of an eligible renewable heat technology type and size
  • The installation was completed and first commissioned on or after 15 July 2009
  • That the heat is used for ‘eligible purposes’ heating space, water or for carrying out a process where the heat is used in a building

Bear in mind that you won’t be eligible for the RHI if you received public funds to help purchase or install the technology.