Renewable Heat Incentive (RHI)
The Renewable Heat Incentive (RHI) is the world’s first long-term financial support programme for renewable heat. We launched the RHI in November 2011 with a scheme for the non-domestic sector that provides payments to industry, businesses and public sector organisations.
We will be expanding the existing scheme to cover additional technologies and will also offer a domestic scheme for individual households. We intend to announce the final details in summer 2013 and open the schemes for payment from spring 2014. Domestic customers should read our guide on the Renewable Heat Premium Payment scheme for details of the householder voucher scheme that is currently available. The RHPP scheme will be extended for a further year to March 2014 to provide continued support for households. This extension will not affect current application deadlines. Further details about the RHPP extension will be available shortly.
The RHI pays participants of the scheme that generate and use renewable energy to heat their buildings. By increasing the generation of heat from renewable energy sources (instead of fossil fuels), the RHI helps the UK reduce greenhouse gas emissions and meet targets for reducing climate change.
The RHI is the main scheme of our heat strategy
The non-domestic RHI scheme
The non-domestic RHI scheme supports renewable heat installations in business, industry and the public sector, as well as heat networks
The 2013 Tariff Review
In response to stakeholder feedback, DECC has looked at the evidence on cost data and heat usage assumptions used to set the levels of tariffs when the scheme was launched, alongside the level of uptake so far under the scheme. Government has decided that some new input assumptions should be adopted and work is underway to identify what the impacts on tariffs will be.
A short consultation on some tariff changes will be launched in spring this year. We plan to announce the outcomes of this work in autumn. Subject to securing necessary approvals, we expect new tariffs to come into force in Spring 2014. Wherever tariffs increase as a result of this review, it remains DECC’s intention to meet its commitment of 21 January 2013 and ensure that installations accredited from that date will also benefit from that increase.
Where there is compelling evidence, DECC expects to consult on increased tariffs for some technologies and to leave other tariffs unchanged via this review process. The degression mechanism the Government announced in February will be used to reduce tariffs if required, according to our policy for budget management. Where DECC consulted on introducing new technologies into the scheme in September, the tariff review consultation will set out any updates to modelled tariffs for those technologies. Decisions on their inclusion in the scheme and the final tariff level will be announced in the Summer in the Government’s response to the September 2012 consultation.
Table setting out the tariff and technologies affected by the Spring Tariff Review.