Grant
 

Renewable Heat Incentive (RHI)
The Renewable Heat Incentive (RHI) is the new Government-backed scheme superseding the grants system from the Low Carbon Buildings Programme (LCBP), providing excellent financial pay-back for a wide range of microgeneration heat production technologies. 
Available for domestic, “non-for-profit” and commercial users, the Renewable Heat Incentive (RHI) gives owners of heat-generating technologies, including biomass, air and ground source heat pumps and solar thermal, attractive financial returns on their investment. Due to be introduced in April 2011, it is designed to reduce CO
2 emissions across the UK and reduce our dependance on traditional fossil fuels, including oil and gas. Please refer to the table below for a list of the proposed Tariffs.
Renewable Heat Incentive Tariffs
Small Installations (up to 45kW)




Heat technologyProposed Tariff (pence per kWh)Deemed or meteredTariff lifetime (years)
Biomass

9

Deemed
15

Air source heat pump

7.5

Deemed
18

Ground source heat pump

7

Deemed
23

Solar thermal

18

Deemed
20


Medium Installations





Heat technologyProposed Tariff (pence per kWh)Deemed or meteredTariff lifetime (years)
Biomass (up to 500kW)

6.5

Deemed or metered
15

Air source heat pump (up to 350kW)

2

Deemed/ metered (optional)
20

Ground source heat pump (up to 350 kW)

5.5

Deemed
20

Solar thermal (up to 100kW)

17

Deemed
20

Large Installations





Heat technologyProposed Tariff (pence per kWh)Deemed or meteredTariff lifetime (years)
Biomass (500kW and above)

1.6-2.5

Metered
15

Ground source heat pump (350kW and above)

1.5

Metered
20

 
 
All the Tariffs outlined above are index-linked to inflation to provide a secure means of financial return for the lifetime of the equipment.
 
From now until April 2011 all approved installations performed by Radical Energy will qualify for the RHI when it comes into force. Please contact us for more information on how using an eco-friendly boiler can not only save you money but earn you money. 
Renewable Heat Incentive – Worked Examples
A domestic property with an annual demand of 25,000kWh to satisfy the central heating and hot water requirements, uses a small biomass installation to achieve this. After taking into account the cost of the wood fuel, the owner would receive approximately £1750, index-linked to inflation every year for the next 15 years. 
 
A small commercial unit uses 80,000kWh of energy for heating and hot water requirements. To satisfy this demand a medium-sized ground source heat pump is utilised within the curtilage of the property. Taking into account the cost of the electricity used to run the heat pump, the business would be eligible for a net income of approximately £3250 payable every year and index-linked to inflation, This would be payable for the next 23 years.