Domestic Biomass Heating (Domestic Renewable Heat Incentive)

The world’s first financial incentive to change the way we heat our homes and businesses has been launched by the government, with householders able to claim payments to help cover the costs of green heating systems from July 2011. The Renewable Heat Incentive (RHI) is an attempt to reduce the UK’s reliance on fossil fuels, reduce carbon emissions and in addition, to encourage innovation and create jobs and growth in efficient heating technologies.

Biomass Heating

Up to 25,000 household heating installations will be supported by a Renewable Heat Incentive (RHI) Premium Payment, helping to cover the purchase price of green heating systems such as solar hot water panels or large wood pellet burning boilers, with a tariff which will provide fixed annual payments to home owners or private tenants who install renewable heating systems. The cost of the work will be funded from savings on domestic energy bills. The scheme is due to start in October 2012.

Eligibility criteria for people wishing to qualify for a Premium Payment, will be published soon. These are likely to include:

Well insulated homes, based on energy performance certificate
The householder providing feedback on how the equipment performs
Non domestic sector.

The RHI scheme will also apply to schools, restaurants, public houses and libraries – in fact virtually any type of business and will help with the installation of, for example, biomass boilers, heat pumps, solar thermal panels etc. Community projects will also be eligible, as long as a single installation is providing heat to more than one domestic property.

The tariffs are payable for 20 years for eligible installations implemented since 15 July 2009 and will be paid for each KWh of renewable heat generated.

RHI Payments

TechnologySavings per year*RHI income per year**
Wood fuelled (Biomass) heating £25 – £1435 £2135 – £3390

*depending on existing system **depending on new system installed. Figures published by the Energy savings trust

For more information visit the Domestic Renewable Heat Incentive FAQ page.

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