The Renewable Heat Incentive

Coverage: Blackburn with Darwen, Blackpool, Burnley, Chorley, Fylde, Greater Manchester, Hyndburn, Lancaster, Pendle, Pennine Lancashire, Preston, Ribble Valley, Rossendale, South Ribble, West Lancashire, Wyre,

Finance Type: Energy Efficiency, Environmental,

The Renewable Heat Incentive (RHI) is the world‘s first financial incentive scheme of its kind designed to increase the uptake of renewable heat technologies and reduce the UK‘s carbon emissions. Broadly speaking, the scheme provides a subsidy per kWhth of eligible renewable heat generated from accredited installations and a subsidy payable to producers of biomethane for injection.

The Government has appointed Ofgem to administer the RHI. Ofgem‘s E-Serve division has extensive experience in delivering similar environmental schemes, such as the Renewables Obligation and the Feed-in Tariff scheme. The Government is responsible for developing the underpinning RHI policy including setting tariffs, establishing the legislative framework, and the introduction of further scheme elements in phase two.

Scheme Eligibility

Initially the scheme will support non-domestic renewable heat installations and the production of biomethane for injection in the national gas grid.

The Government aims to introduce support for the domestic sector in phase two of the scheme. In the interim, the domestic sector may be eligible for the Renewable Heat Premium Payment (RHPP), which is a separate, complementary grant scheme to the RHI. Further information on the RHPP is available from the Energy Savings Trust‘s RHPP webpage.

The following renewable heat technologies will be supported initially:

• solid biomass and solid biomass contained in municipal waste (including CHP),
• ground and water source heat pumps,
• geothermal (including CHP),
• solar thermal (at capacities of less than 200 kWth),
• biogas combustion (except from landfill gas but including CHP; at capacities of less than 200 kWth)
• biomethane injection.

Participants will also need to meet several other eligibility requirements which are explained in the online Guidance. These include demonstrating that the heat is used for an eligible purpose, that metering arrangements are appropriate, and that grants have not been received for certain purposes.

Participants will be able to apply via the Ofgem RHI website, link given below.

Funding: Tax free payments from the Government dependent upon the amount of renewable heat generated for up to a period of 20 years

Type of Funding: Grant

Project Timeframe - Expiry Date: n/a

Eligibility: Full eligibility requirements available on Ofgem website, link below.

Disclaimer: The information above was accurate at the time of publishing. This is a constantly evolving directory and we will amend the details as and when required. Regenerate Pennine Lancashire is not responsible for the accuracy of external information.

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