Renewable Heat Incentives

Posted on March 16, 2011 by Builder Bob There have been 2 comment(s)

FIT Complement                                                       

Despite – or perhaps because of - the brewing controversy over Feed-in-Tarrifs and Solar Milk Farms referred to in previous Blogs, a new Renewable heat Incentive has been created.

Intended to encourage home (self)builders and owners to use the new technologies that are being developed for renewable heat, this complements the electricity feed-in-tariff scheme.


The Department for Energy & Climate Change (DECC) who are responsible for this new incentive indicate that all forms of building will be eligible.

The technologies presently contemplated include biomass, heat pumps, and solar thermal.  Community schemes that heat more than one house will also be eligible.

Backdated 20 Year Payments

Any installation made after 15th July 2009 can claim, providing the technology used is eligible.  The tariff payments will be made for 20 years for each renewable KWh of heat produced.

Annual Adjustments

Although the tariffs will be fixed, progressively reducing over time in line with anticipated cost reductions, these will be inflation adjusted each year.

Clearly the scheme is intended to help ‘kick start’ a major uptake in such renewable new heat technologies.

Green Deal Parallel

To encourage whole house thinking, from 2012 these new RHI tariffs will parallel the Governments Green Deal provisions.

Until then, from July some twenty five thousand projects will receive RHI Premium Payments to help pay for installations.  From October next year, people who take this up will be able to get the new RHI Tariff payment when the Green Deal starts.  This will also apply to people who have installed such equipment since July 2009.

New Homes will also be eligible under the 2012 phase.

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2 Responses to Renewable Heat Incentives

  • All these ideas or projects sound great on paper, but we still seem to need to have lots of money to carry them out before we can claim the money back. The other self creating problem is that all the required works have to be carried out by government registered suppliers and fitters. These fitters have to pay the government bodies a rather large amount of money to be registered. This in turn has to be added to the amount that the fitters charged the householder. If the government were really serious about every house being brought up to standard, wouldn't you think that they would scrap these charge and bring solar into the range of the lower paid section of the population? It is no surprise that we are so far behind Germany. Every idea in the UK seems to involve more effort in creating well paid jobs for the boys.

    Posted on May 23, 2011 at 11:39 am

  • Bang on Keith!
    UK governments have been pittifully slow in encouraging new initiatives

    Rather than ussing our North Sea Oil Bonanza form the late 70's onwartd to invest in new technolgies that would be required, Governments of all colours have repeated shut their eyes and closed their wars to trends and eventgs.

    Instead they have bribed the electorate with false promisses and 'goodies today', squandering our childrens' inheritance.

    While they have not been alone in doing so, at least Germany now seems to have woken up and bit the bullet.

    Unless the UK does the same very, very soon, our economy will continue to decline.

    Bankers and the financial service sector produce little if anything of tangible lasting worth. They are merely the croupiers in an addictive global game of roulette.

    Posted on June 5, 2011 at 1:19 pm

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