Scheduled quarterly cuts to the Renewable Heat Incentive are happening at the end of September 2015 and it’s important for customers investing in a renewable heat technology to understand what they mean.

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The Renewable Heat Incentive is a government-led scheme that was initiated back in 2014 to provide financial incentive for customers making the switch to a renewable heating technology. The RHI scheme, in effect, aims to bridge the difference in costs between traditional heating solutions and renewable alternatives by paying customers, domestic and commercial, for the renewable heat they generate.

RHI payments are made on eligible systems dependent on the output of the system and the energy efficiency of the property, among other things. Air source heat pumps, ground source heat pumps, biomass boilers and solar thermal systems. More information on the RHI can be found by visiting our ‘Renewable Incentives’ page or Ofgem’s guide on the Renewable Heat Incentive.

What changes are being made to the Renewable Heat Incentive?

Fortunately for customers looking to make the switch to a renewable heat technology, the October RHI cuts shouldn’t put you off.

Air source heat pump RHI rates are set to remain the same. Air source heat pump Installations completed before 1st October, 2015 received 7.42p per unit of renewable heat generated and installation after the deadline will earn 7.42p per kilowatt hour of heat generated.

Ground source heat pump RHI rates will also remain unchanged. Before the deadline ground source heat pumps were eligible for 19.10p per kilowatt hour of heat generated and will remain at 19.10p after the deadline.

Solar thermal systems eligible for RHI payments will retain the same rate of benefit following the October deadline. Solar thermal installations will continue to earn customers 19.51p per kilowatt hour of heat generated.

The only heat technology set to digress of as a result of the October cuts is biomass. Biomass boilers installed prior to the cut would earn domestic customers 7.14p per kilowatt hour of heat generated. Biomass installations undertaken after the October deadline will pay 6.43p per unit of heat generated.

RHI rates for domestic Renewable Heat Technologies

Renewable Heat Technology RHI rate up to 30/09/2015 RHI rate after 01/10/2015
Air source heat pumps 7.42 7.42
Ground source heat pumps 19.10 19.10
Biomass boilers 7.14 6.43
Solar thermal 19.51 19.51

Want to find out more?

GreenGenUK have been installing renewable heat solutions since opening in 2011 and, as we’re MCS accredited, all the technologies we use and installation we complete are eligible for RHI payments.

To discuss the benefits of making the switch to a renewable heat alternative or to find out more information on the Renewable Heat Incentive, fill out the enquiry form found at the bottom of this page or give us a call in the office on 01326 564513.