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Renewable Heat Incentive (RHI)

The Renewable Heat Incentive (RHI) which is the first of its kind in the world, will encourage the installation of renewable heat equipment such as solar thermal technologies, biomass boilers and heat pumps. 

Heat production is responsible for around half (49%) of the final energy demand consumed by the UK and roughly half of all UK's carbon emissions.  Taking action now to switch from fossil fuels to cleaner and more sustainable green sources of energy will reduce the impact that our heat requirements have on the environment and help ensure the UK has an energy supply that is safe, secure and reliable.

Renewable Heat Incentive (RHI) Phase 1 - NOW LAUNCHED - November 2011
On the 28th November 2011, the RHI tariffs for non domestic installations in the industrial, business and public sector was introduced.  Those looking to install the renewable heat technologies will be eligable to receive a tariff as listed below;

Tariff Name Eligable Technology Eligable Sizes

Tariff Rate (pence/kWh)

Tariff Duration (years) Support calculations
Small Biomass

Solid Biomass; 


 Less than 200kWth

Tier 1:  7.9

Tier2:  2.0



Tier 1 applies annually up to the Tier Break

Medium Biomass

Solid Biomass; Municipal Solid Waste (incl.CHP)

200 kWth and above; less than 1000kWth

Tier 1:  4.9

Tier 2:  2.0


Tier 2 above the tier break. 

The Tier break is: installed capacity x 1,314 peak load.

Large Biomass   1000kWth and above  1.0  20  Metering
Small Ground Source

Ground source heat pumps;

Water-source heat pumps

Less than    100 kWth

 4.5   Metering
Large Ground Source Deep geothermal  100 kWth and above  3.2 20  Metering 
Solar Thermal Solar Thermal  Less than 200 kWth  8.5 20  Metering 
Biomethane Biomethane injection and biogas combustion, except from landfil gas  Biomethane all scales, biogas combustion less than 200 kWth  6.8  20 Metering

Eligablilty for the RHI;

  • The building must be non domestic.
  • The system must have been commissioned after 15th July 2009 and you/or a client must not have received any capital grant or the receiver is prepared to pay the grant back.
  • Seperate multiple domestic properties are eligable if heated by a single plant room and connected by district heating pipe.
  • The installer must be MCS accredited.
  • Heat meters must be located correctly.

There will also be support of around £15 million for households through the RHI Premium Payment (RHPP), to help cover the purchase price, from August 2011.  In return for the payments, participants will have to provide feedback on how the equipment performs in practice.

The levels of support under the RHI Premium Payment are;

Technology Level of Support (per unit)
Solar Thermal £300
Air Source Heat Pumps £850
Biomass Boiler £950
Groud Source Heat Pump £1250

As part of the Renewable Heat Premium Payments £3 million has been set aside for social housing providers.    The deadline for applicants has already passed (15th September 2011) and successful applicants should have had confirmation of their winning bid in October. 

Are you a successful applicant of the RHPP? Or are you looking for an installer? To find out further information on phase 1 please call us on 0191 2952900 or email us at . 

Phase 2 - October 2012

From October 2012, RHI tariffs for domestic properties will become available at the same time as the introduction of the Green Deal.  The government has confirmed that the renewable heat installations installed in homes since 15th July 2009 will get the RHI once it comes in, provided they meet the eligability criteria.  They have also confirmed that this will include those who receive support under the RHPP scheme.  However, the Government has yet published its proposals of how the RHI will work in the domestic sector.

John N Dunn Group can offer advice and illustrations of what benefits you can obtain from your particular heating plans and help with RHI applications.  Call us on 0191 2952900 or email us at .

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