The Domestic and Non-Domestic versions of the Renewable Heat Incentive operate similarly. The Government offer subsidy payments to individuals and businesses for any hot water and heat which is generated and used by themselves.
Exactly what tariff the beneficiary benefits from is entirely dependant on which renewable heat system is being used as well as the scale of heat generation. Calculations indicate that even the most expensive renewable energy installations should’ve paid for themselves over the course of several years.
Non-Domestic Renewable Heat Incentive
The Non-Domestic Renewable Heat Incentive was introduced backed in November 2011. The intention of the incentive is to make a significant contribution towards the 2020 target. This target is to have renewable sources making up 12% of the country’s heat generation.
New regulations for the Non-Domestic RHI scheme were introduced in May 2018. The regulations can be read in full on the website of Ofgem, the UK’s energy industry regulator.
Domestic Renewable Heat Incentive
Despite the Government at the time declaring its full support for the RHI in 2010, the initiative wasn’t actually extended to domestic buildings until 2014 due to a series of delays. It was then made available for any eligible renewable energy installations that had been commissioned from mid-July 2009 onwards.
Updated regulations were introduced in March 2018, with the full list of changes to the Domestic RHI scheme available to read on Ofgem’s website.
Renewable Energy Technologies Eligible for RHI
Solar thermal panels are probably the most well known of the eligible technologies. They capture the sun’s energy using photovoltaic cells and convert the sunlight into electricity. The electricity is then used to heat water as well as power all the building’s lights and electrical appliances.
Ground source heat pumps can be used as part of the central heating system of a building or as under floor heating. Using pipes which are buried in the garden or other suitable outdoor space that extract heat from the ground. The ground source heat pump can also be used to heat water.
Air source heat pumps create and transfer heat from outside of the building to the inside, or vice versa if needs be. Because they don’t require burying underground, air source heat pumps are much easier to install than ground source heat pumps. Yet both can perform the same job of providing heat and hot water for the building.
Biomass boilers are the other renewable energy technology eligible for the RHI. They are a low carbon, wood fuelled heating system which can be adapted to domestic or commercial premises. However they involve significantly more maintenance than the previously mentioned technologies. They do however provide an affordable heat and hot water option for buildings large and small.
If you would like more information about how you could benefit from the Renewable Heat Incentive then email Caplor Energy or call 01432 860644.