What is the Renewable Heat Incentive (RHI)?
The UK Government describe the scheme as follows:
‘The Renewable Heat Incentive (RHI) is a UK Government financial incentive to promote the use of renewable heat. Switching to heating systems that use naturally replenished energy can help the UK reduce its carbon emissions. If you join and comply with the scheme rules, you’ll receive quarterly payments for seven years for the amount of clean, green renewable heat the system produces.’ You can read the full policy document on the Gov.uk website.
In practice what this means is you could save up to 50% on heating bills and generate a regular income when you replace LPG, oil or electricity with a biomass boiler to heat your home. All thanks to the government backed Renewable Heat Incentive (RHI) scheme. The RHI pays home-owners a 7 year income, earning the typical home up to £3,500 a year, so it’s an ideal way for rural and off-grid homes or larger older properties with high gas consumption to switch to a more affordable heat source and protect against rising fossil fuel prices.
Protect yourself against future oil, LPG and electricity price rises
Given the way fossil fuel energy prices are rising, the savings gap between biomass and traditional fuels is expected to widen significantly over the coming years – and the government’s Renewable Heat Incentive is the guaranteed financial incentive that will make sure your system pays and help protect against future oil, LPG and electricity price rises.
RHI makes installing a Biomass system more than pay for itself
Let’s say a homeowner installs a 25 kW biomass system for £13,000. By changing from oil to biomass to fuel their home, they could achieve a total RHI payment of £11,820 over seven years.
That figure doesn’t take into account fuel savings which can be considerable as Biomass Boilers are around 90% efficient.
The RHI calculation is very simple
Assuming the property has an EPC rating of 32,850kWh and RHI tariff is at the current rate of 5.14p per kWh.
To calculate the RHI payment we simply multiply the two figures together e.g. 32,850kWh x 5.14p RHI tariff = £1,688 each year over the seven years of the RHI payments, tax free and index linked.
Figures are correct as of 1st January 2016.
With these fuel savings, cheaper energy bills and money made through the RHI, just think what you could do with these savings and earnings! Pretty good for just changing your boiler.
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“I’m very happy with the Biomass Boiler Euro Energy Services installed, my home is much warmer now and there’s always enough hot water, no one ever shouts ‘…the hot water’s gone’ any more! On top of that my fuel bills are so much lower making me, and the rest of the family, very happy.”Mr Jones - Harrogate
How do I get paid?
It couldn’t be easier. Under the RHI scheme, you will receive regular quarterly payment for seven years directly into your bank, it is tax free and linked to inflation.
This short presentation describes how the RHI works and gives real life examples of Biomass Boilers Euro Energy has recently installed and the level of payments our customers will receive.
How do I qualify for the Renewable Heat Incentive?
To claim the funds and qualify for the RHI you need to have an approved boiler and installer, like Euro Energy Services.
The system that you install must be certified under the Microgeneration Certification Scheme (MCS) by an accredited installer and meet relevant standards for the technology.
You will also need to have your home home assessed by a Green Deal advisor to ensure it meets minimum energy efficiency requirements and you will receive an Energy Performance Certificate (EPC) that you will need to complete your registration.
Biomass renewable heat generated is based on an estimated figure of heat demand from and Energy Performance Certificate and the amount you earn in the scheme will depend on the kW hours stated on the EPC.
If you don’t have a valid Energy Performance Certificate available, we can provide this service to you and we will send one of our qualified and accredited Green Deal Advisors to complete the assessment.