Renewable Heat Incentive (RHI)

The Renewable Heat Incentive (RHI) is a government scheme designed to increase the use of renewable heat technologies amongst businesses.

The scheme also applies to householders however different rules apply.

It is related to, but not the same as the Feed In Tariff Scheme (FIT)

The RHI offers payments to businesses for each kWh of heat generated using low-carbon heating technologies so as to promote their adoption. Eligible technologies are:

• Solid biomass
• Combined Heat and Power (CHP) systems for solid biomass, waste, geothermal and biogas
• Solid biomass contained in waste
• Heat pumps (ground source, water source and air-to-water)
• Solar thermal
• Geothermal
• Biomethane
• Biogas

The incentives are payable for the life of the installations or up to a maximum of 20 years, whichever is greater.

Accreditation

Ofgem is responsible for implementing and administering the scheme on behalf of the Department of Energy and Climate Change (DECC).

As part of Ofgem’s role they are required to:

• Accredit the installation
• Keep a register of the producers of biomethane
• Validate eligibility criteria, including identity, bank details & ownership
• Make the quarterly payments for the Heat Generated by Eligible Installation (kWhth) [HGEI] or biomethane produced
• Inspect the installations to ensure compliance

Accreditation requires:

• Your installation was completed and the plant was first commissioned on or after 15 July 2009.
• As the applicant, you must be the owner of the installation (we have to verify identity and validate bank details). If there are multiple owners, you must have permission to act for them.
• Air-to-water source heat pumps biogas installations with a capacity of more than 200kW and solid biomass CHP systems must have been commissioned on or after 4 December 2013.
• The plant was new at the time of installation.
• Your equipment can be used for space, water or process heating within a building. Heat can also be used for cleaning and/or drying on a commercial basis.
• Your equipment must use liquid or steam to deliver the heat (no direct air heating).
• The equipment must be MCS certified (or equivalent) if the installation capacity is 45kW or under – for biomass, heat pumps and solar thermal.
• You can’t use a public grant to buy or install the equipment (unless it has been repaid – see the Grant Repayment factsheet for further information on this).
• The metering arrangements must be correct – the right type of meters calibrated and placed in correct locations according to whether the installation is classed as using a standard or multiple metering arrangement.
• You can’t use the equipment to heat a single domestic home, although a combination of homes sharing a heating installation may be eligible, eg a district heating system.

How to apply

Online at www.ofgem.gov.uk/RHI or by phone to Ofgem on 0845 200 2122

In addition you will be required to submit:

• A hard copy form with your organisation’s bank account details.
• A declaration that you will continue to meet the on-going obligations required by the scheme to receive accreditation.

Your application needs to include your installation company’s details, the date of installation and installation serial number. Required supporting documentation will include:

• Receipts and/or invoices relating to the installation of the equipment
• Commissioning certificate
• Commissioning report
• Photograph of the installation clearly showing the serial number of the equipment
• Photo of meter(s), both calculator(s) and flow meter(s), clearly showing the serial number and MID/Class 2 markings (Figure 2)
• Copy of Class 2 Measuring Instruments Directives (MID) certificate
• Schematic diagram of the installation
• Letter of Authorisation that confirms your organisation’s Authorised Signatory for its RHI account. The letter of authorisation includes information on what to do and templates you can use
• Evidence of non-single domestic status such as multiple council tax bills or a business rates bill
• An Independent Report on Metering Arrangements if your installation has a capacity of 1MW or above, or is classed as ‘multiple’ for RHI metering purposes.. The fact sheet includes information, a template and instructions on how to complete the report. OR if your installation is 45kW or below we require an MCS certificate or equivalent certificate.

Note: Preliminary accreditation is available where an installation will be eligible once built. This however only applies to Geothermal, Biogas and Solid Biomass with capacity of 200kWth and above.

Statement of Eligibility

If your application is successful, Ofgem will issue you with a Statement of Eligibility including:

• The date of accreditation
• The applicable tariff rate for your installation
• The process and timing for providing meter readings
• Details of the frequency and timetable for payments
• The tariff lifetime and the tariff end date for the installation
• The terms and conditions for your on-going participation in the scheme.

If there are any changes to the accredited installation you are required to inform Ofgem within 28 days

The date of accreditation will be based on the following:

• That application has been made in accordance with regulation 22(2) and (3) of the RHI Regulations
• All RHI eligibility requirements applicable to the installation are satisfied
• The installation has been commissioned.

The date of accreditation for your installation is the date from which your RHI payments will be calculated.

Note: Biomethane producers are treated differently to other participants in the Non-Domestic RHI. This is because the government has decided that the regulations and standards currently in place for biomethane injection are sufficient to ensure that the Non-Domestic RHI requirements are met, so no further RHI-specific accreditation standards are necessary. As a result the Regulations describe the process for biomethane producers as ‘registration’ rather than ‘accreditation’.

The rewards

Solid biomass including solid biomass contained in waste

Small commercial biomass p/kWh

Medium commercial biomass p/kWh

Large commercial biomass p/kWh

Solid biomass CHP systems (commissioned on or after 4 December 2013)

Ground Source Heat Pumps

Small commercial heat pumps

Large commercial heat pumps

Air Source Heat Pumps

Air-source heat pumps (commissioned on or after 4 December 2013)

Deep geothermal (commissioned on or after 4 December 2013)

Solar Thermal

Biomethane injection

Small biogas combustion

Medium biogas combustion (commissioned on or after 4 December 2013)

Large biogas combustion (commissioned on or after 4 December 2013)

To find our more about the Renewable Heat Incentive, how your business could benefit or for help finding the right energy supply contract for your needs, simply call us on 0800 051 5770, we’d love to hear from you.