Renewable Heat Incentive (RHI)

Launched in June 2011 the RHI is a Government scheme intended to encourage and incentivise the use of renewable, low carbon energy

In simple terms, through the RHI scheme, energy providers will pay energy users for every kW of renewable energy they produce. Although the figures and details are yet to be finalised, there is likely to be a huge demand for renewable heating systems with the added benefits from this scheme.

Installing a ground or air source heating systems will not only help a building achieve today's and tomorrow's renewable energy targets, it will also lower running costs and help companies meet carbon reduction targets.

As we get to 2011 and enter the world of renewable incentives, advanced heat pump systems will also start to work even harder, earning money for every 1kW of renewable energy produced.

The RHI details are yet to be finalised, but it's expected that it will:

Compensate investors (system owners) for the cost of renewable heat
Support 'useful' renewable heat, such as space and water heating
Pay a return on investment of around 12% across all technologies
Reward by either deemed heat load (EPC) or by metered kWh generated
Reward for the expected life of a system - ranging anywhere between 10 to 23 year

For more information please visit www.decc.gov.uk

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