Renewable Heat Incentive – All that needs to Be Known

The world is going green. It wants to breathe the purest form of air but our necessity of energy has proved to be the biggest impediment in this. As it must be known to many, electricity or power generation is one of the biggest causes of global warming. To minimise this people, countries and governments are bringing in measures to create renewable energy. One such initiative is taken by the UK government and is called Renewable Heat Incentive.

As the name suggests, it is the incentive provided to people who generate energy from natural or renewable sources. By providing financial assistance to these people the UK government wants to promote the use of renewable heat technology. Under the scheme, the government offers financial incentives for installation of renewable technology for household as well as non-domestic purposes.

Launched in November 2011, this project went live for commercial buildings while it came into domestic realm much later in 2014. Domestic RHI is suitable for anyone including homeowners, landlords and self-builders. Non Domestic RHI is for commercial domains that includes industries, schools, hospitals, non-for-profits, organizations, communities and small or big businesses.

Domestic Renewable Heat Incentive – The application process:

You need to check the energy regulator Ofgem’s website for the application form for RHI. The heat technology should be heating only one domestic property. And you need the Energy Performance Certificate (EPC) that suggests the exact amount of energy is used in a house. Mind well that Domestic RHI scheme is applicable only in Scotland, Wales and England. Rest all details can be checked from the Ofgem website.

Non-Domestic RHI – The application process:

Again, Ofgem’s website is the best place for getting all details about the application for Non-Domestic RHI. Keep in mind that you may have to follow a strict procedure and abide to many rules made by Ofgem.

Major advantages of Domestic RHI:

Well, if you have installed renewable heat generation equipment in your premises then you will end up getting money at a pre-decided rate. If your home is connected to the main gas grid then you get this benefit. However, there is a mechanism to reach out to those who are not connected to the main gas grid.

Following are the rates at which the pay-out would be made:

• 7.3p/kWh if you are generating heat from air pumps

• 19.2p/kWh, if the renewable source is solar panels

• 18.8p/kWh if the renewable source is water or ground

• 12.2p/kWh if you are generating energy from biomass

Properties that do not fit in any of the two – Domestic RHI and Non-Domestic RHI and are generating energy from natural sources then they need to follow Ofgem’s guidelines and rules. For more details, they can send an email to [email protected] or call on 0300 003 0744. Make sure that the call is made between 8am and 7pm from Monday to Friday.

For more details on companies that offer green electricity, their tariffs, quotes and compare energy suppliers, just check our website www.freepricecompare.com or call us on 02034757476.

Written by

Shay Ramani

Founder and Managing Director at Free Price Compare

Expert in Cost Saving and Financial Solutions