If you’re considering installing a Wood Pellet Boiler in your home, during your research you will have come across the phrase ‘renewable heat incentive’ or RHI. What is it and what does it mean to you?
RHI is a government-backed scheme that has been set up to help encourage homeowners to change from using fossil fuels to heat their homes to renewable energies, such as wood pellet boilers. It is a quarterly payment scheme that will run for up to 7 years from the date of commission. The payments are based on the number of kilowatt-hours of heat you produce and use.
History of the Renewable Heat Incentive
The RHI scheme was launched in 2014 and aimed at the domestic market, encouraging people to embrace renewable energy and cut carbon emissions. This will assist the government in reaching its renewable energy targets and decrease the public reliance on fossil fuels for the long term.
There have been minor changes to the scheme over the last few years, but it is still accepting new applicants through Ofgem. However, it is important to keep up to date with any changes to the RHI scheme, as the government carries out periodic reviews, at which point the scheme’s qualifications requirements, payment levels and ongoing obligations may alter. Even after you have been accepted on to the scheme it is important that you keep up to date to ensure that your RHI payments are safe.
How does the Renewable Heat Incentive work?
While the RHI is not as lucrative as it was in 2014, it is still a financially attractive option. Biomass boilers commissioned after 1st July 2017 are eligible for 3.85p/kWh in RHI payments and with Woodlets costing 5.6/kWh the RHI will still contribute to over 60% of your yearly net fuel bill, which is not an insignificant amount.
Homeowners, self-builders and landlords who have installed a biomass boiler can apply for RHI payments as soon as the boiler is commissioned. To be accepted onto the scheme you will need: -
- An Energy Performace Certificate (EPC) for the property
- A Microgeneration Certificate Scheme (MCS) number.
For ongoing compliance, you will also have to show evidence that the wood pellet fuel you have used has come from a supplier registered on the Biomass Suppliers List (BSL). Payments are sent out quarterly over seven years, deposited straight into your bank account.
How to Apply
Head over to the Ofgem Website to apply for payments from the Renewable Heat Incentive. You can also get more information on being a participant as well as the installation of wood pellet boilers.
For more information on Woodlets and information on ordering wood pellets from us, read our About Us page here.