Renewable Heat Incentive Guidance

The Renewable Heat Incentive (RHI) is a fixed payment for the renewable heat generated by yourself.

RHI is similar to existing Feed-in Tariffs: a comparable scheme for electricity launched April 2010. Feed-In Tariffs have done more than anything else to accelerate the installation of renewable energy capacity in Europe. That’s why the founders of Renewable Heat Incentive Limited were so active in campaigning to introduce to the UK. It succeeded. In 2011, the first phase of the Renewable Heat Incentive was delivered.

With Feed-In Tariffs in common, important differences exist.

  • RHI will be paid for by the Treasury and not energy users
  • No ‘National Grid for Heat’ exists; importing and exporting heat is not relevant
  • RHI will be introduced in phases, with residential schemes not eligible until phase 2

Renewable Heat Incentive InformationThree steps to the RHI:

Step One: Installation of renewable heat systems to your property e.g. solar thermal panels, heat pumps or biomass boilers.

Step Two: Self-measurement of heat generated by own renewable energy systems.

Step Three: Fixed amount payment based on that output, type of technology and physical size of heat system installed.

Who is it for?

Broadly speaking, the Renewable Heat Incentive is for everyone, including households, landlords, businesses, farmers, schools, hospitals, care homes and more. The RHI can even be used by communities coming together to invest in a renewable scheme from which they share actual heat generated and income. However residential systems are not eligible for support until phase 2.

What renewable energy systems are eligible?

Most forms and sizes of renewable heat generation.

Is electricity covered?

No. Electricity will be handled by Feed-In Tariffs, RHI’s older brother.

We used the word ‘older’ because unlike the Renewable Heat Incentive, Feed-In Tariffs are in place in roughly 40 countries. The Renewable Heat Incentive is a world first! Visit our sister website that hopefully answers all remaining questions surrounding the renewable heat initiative.

Can I learn more about RHI? 

Yes! We have compiled a short, fact-filled guide to how RHI works and how to save money.