From today, Monday 28 November 2011, the Renewable Heat Incentive (RHI) is open for applications from non-domestic generators allowing them to receive quarterly payments for heat generated for the next 20 years.
The scheme which is run by Ofgem is especially relevant to land owners and rural businesses owning renewable heating systems that provide heat to more than one property such as their own residence and farm or estate cottages or other buildings.
The RHI is initially aimed at industrial, business and public sector generators and covers support for a range of technologies and fuel uses including solid biomass, ground and water source heat pumps, geothermal, solar thermal, biogas combustion and biomethane injection into the National Gas Grid (which is subject to different eligibility criteria).
Payment tariffs can be accessed on the DECC website www.decc.gov.uk
To be eligible for the RHI, applicants must meet a range of criteria including:
• Size, type and technology of installation
• The plant must have been commissioned on or after 15 July 2009
• The heat for which the RHI is being claimed must be for an eligible purpose
• No other grant from public funds can have been paid in respect of any costs for the purchase or installation of the plant
• Plant must be new
• The heat delivery medium of the system to which the installation provides heat must use liquid or steam
• Only installations that do not serve a single domestic premises are eligible in the first year.
The RHI will be extended in 2012 to individual households whose uptake of the scheme is initially being encouraged through the Renewable Heat Premium Payment (RHPP) which provides householders with a one-off payment towards the cost of installing eligible renewable heat technology.
Shirley Mathieson, renewables spokesperson for the Landed Estates & Rural Business Group of Saffery Champness, says: "This system is being put in place as a part of energy policy for further carbon reduction and to promote future energy security. It will provide long-term financial support to generators of heat from renewables sources and encourage the uptake of renewable heat.
"Those who wish to join the scheme must apply to Ofgem for accreditation. Only the owner of the installation can apply."
