Renove Biomass

RHI – Renewable Heat Incentive

The Renewable Heat Incentive or RHI for short is a ground breaking scheme to encourage take-up of renewable heat technologies in the UK. The scheme started in November 2011 for business and will follow in September 2013 with a separate scheme for domestic users. RHI works in a similar way to the solar FITs (feed in tariff) in that clients who install an eligible system will get paid for every unit of heat that the system produces. The payment will vary dependant on the size of the system, the technology used, and the amount of heat generated.

What systems are eligible?

Currently the following technologies are eligible:

Technology Tariff
Biomass 1-8.3p
Ground Sourced Heat Pumps 3.4-4.7p
Solar Hot Water 8.9p
Biomethane 7.1p

Once on the scheme, the government will guarantee to pay you for each and every unit of heat that you produce for the next twenty years, index linked, guaranteed and tax free.

What does this mean to our business?

Have a look at the table below:

Renewable Heat Incentive

You can see that by switching to a Biomass boiler, we will be able to reduce the cost of a unit of heat from a maximum of 15p, down to an average of 3.5p (or 4p for pellets). A significant saving of up to 70%.

Now lets look at the Renewable Heat Incentive for Biomass. Assuming that your boiler size is less than 200kW (most apart from really large buildings will be), then you will attract the maximum benefit of 8.3p per unit. This means that with your fuel costs being 3.5-4.0p, you will earn 4.3-4.8p for per heat unit.

Have a look at a couple of typical examples for boilers up to 100kW below.

Renewable Heat Incentive

You can see that the larger the boiler, the better the potential returns. We can normally guarantee that the money from the RHI will more than cover your annual fuel bill and the system will pay for itself in less than seven years.

Want to know more?

Call us directly to explain in detail how the renewable heat incentive will work for your business on 0845 838 8758