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RENEWABLE HEAT INCENTIVE

The RENEWABLE HEAT INCENTIVE (RHI) is a payment scheme in England, Wales, and Scotland that incentivises the generation of heat from RENEWABLES. Payments are made to building owners that install renewable heat generation technologies such as; air source heat pumps (ASHP), ground source heat pumps (GSHP), water source heat pumps (WSHP), biomass boilers, and solar thermal panels. The tariffs depend on the particular technology adopted based on the expected cost of renewable heat generation over 20 years and are paid out on a quarterly basis over seven years. In order to qualify for the scheme, applicants must have a green deal assessment carried out, install loft insulation if it is recommended, have an EPC certificate, and the renewable heating system and the installer must be certified under the MICROGENERATION CERTIFICATION SCHEME. The RHI scheme was launched by the UK government in 2011, and replaced a former scheme called the ‘Low Carbon Building Programme’ that had ended in 2010. The first phase of the scheme was only for non-domestic buildings, but it was extended to include domestic buildings at the launch of the second phase of the scheme in 2014. The second phase was due to end in 2021 but has been extended to 2022 due to the Coronavirus Pandemic. Given the UK governments net-zero by 2050 target, it is expected that the RHI scheme will be extended beyond 2020 or replaced by a similar scheme.

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