Renewable Heat Incentive (RHI)

When can I claim the tariffs?

You will not be able to claim the tariff until April 2011. However, any system that was installed after July 15th 2009 will be able to claim the Renewable Heat Incentive when it goes live.

How to register

Once you have installed your renewable heat incentive, how will you claim the tariff?

To register for the Renewable Heat Incentive you will have to provide proof of installation to Ofgem so that you can be formally registered in the scheme. However, do NOT try doing this now as the scheme isn't live yet.

Once that has been done we are told that Ofgem will begin paying the incentive. This is likely to be in the form of an annual lump sum, probably credited to your bank account but final details won't be revealed until the consultation response is published.

Government announces Renewable Heat Initiative consultation

The Government has published the consultation document for the Renewable Heat Incentive, which is intended to be launched in April 2011. In order for the UK to meet its carbon reduction obligations 12% of UK heat is required to come from renewable sources. The RHI could save up to 60 million tonnes of carbon dioxide by 2020. The RHI is not only intended to reduce carbon dioxide emissions, but also to increase the security of supply of UK energy – in 2008 the UK imported around 25% of its natural gas with a projected increase to 60% by 2020.

Funding the RHI

The RHI powers in the Energy Act 2008 enable the introduction of a new levy on fossil fuel suppliers who supply fossil fuel to consumers for the purpose of generating heat.

Who can receive the RHI

Houses and buildings which currently use conventional fossil fuel for heating, such as gas, heating oil or coal, will be able to claim the RHI if they switch to renewable technologies. The RHI will be available to householders, local authorities and social landlords as well as the public, industrial and commercial sectors. The RHI is applicable to the whole of the UK except for Northern Ireland, which will have its own powers to enable a similar scheme.