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Renewable Heat Incentive

The UK Government has now announced the introduction of the Renewable Heat Incentive (RHI) from 2011/12 as part of their Comprehensive Spending Review.

The scheme is expected to be launched in June 2011. Further details along with tariff levels will be confirmed early 2011

What is it?

The Renewable Heat Incentive (RHI) is designed to provide financial support that encourages individuals, communities and businesses to switch from using fossil fuel for heating, to renewables such as Air Source Heat Pumps.

How the scheme works

If you replace your existing fossil fuel heating system (e.g. gas, oil or coal) with a renewable technology (e.g. Air Source Heat Pump) you could get paid a set amount each year as an incentive for you to reduce your CO2 emissions and help prevent climate change.

The Government are not proposing to measure the heat generated from installations. Instead, an estimated figure will be used to work out payments.

The estimated figure represents the amount of heat energy needed to warm the home and/or hot water and will vary by house age and size, as well as by technology.

It has been proposed that payments would be made annually to householders.

Eligible technologies

Green Deal

Over a quarter of the UK's green house gas emissions come from existing housing stock. Given the government's target of reducing these emissions by 80% by 2050, successfully tackling carbon emissions from existing housing stock will be critical.

Green Deal is the new government initiative to help meet the upfront cost of making your home more energy efficient. Due to be launched in late 2012, Green Deal will allow you to install energy efficiency measures paying for the improvements with the savings on your fuel bill.

Although you will repay the cost over time, this is not a conventional personal loan as the charge is attached to the meter and paid back through your fuel bill. If you move out, the idea is that the new occupant will pick up the charge while also benefitting from a more energy efficient property.

Visit Decc's website for further information on the Green Deal. If you have a specific enquiry then you can also email


Likely levels of support for RHI Premium Payments:

Solar Thermal - £300/unit

Air Source Heat Pumps - £850/unit

Biomass boilers - £950/unit

Ground Source Heat Pumps - £1250/unit