Renewable Heat Incentive Guide – How It Works And How To Save Money

What is the Renewable Heat Incentive?

It is a payment for generating heat from renewable sources. Like Feed-In Tariffs, it is set by Government.

The RHI is administered by the official regulator, Ofgem who pay tariffs with money from the Treasury.

How much is the Renewable Heat Incentive worth to participants?

First of all you will save money by eliminating or reducing your need for gas or oil, both of which are becoming increasingly expensive year-on-year.

Secondly, you will be paid up to 8.5p/kWhr for the hot water and heat you generate and use yourself. It depends on exactly what systems you use and how large they are as to what the exact tariff level is.

You can find more information about eligible RHI approved meters from DMS Metering Solutions.

How long do RHI tariffs last?

They are paid for 20 years from the registration date and index-linked for inflation.

Is that long enough to cover installation costs?

In most cases the simple answer is yes. We estimate that many participants will earn enough money from tariffs to pay off installation costs in seven to nine years. According to the Government, which has set tariff levels, the average for most systems is a return of around 12% per year.

When do they start?

Tariffs will be paid from late 2011 for non-residential systems and from October 2012 for households.

However, suitable RHI compliant heat meters installed from now will be eligible for tariffs.

Are there restrictions?

There are various technical and accreditation requirements detailed here.

Where can I purchase RHI Compliant Heat Meters?

DMS Metering Solutions supplies an extensive range of RHI compliant heat meters to match all budgets.