Renewable Heat Incentive improvements implemented

Posted on 28 May 2014

BiomassLong-awaited improvements to the world’s first Renewable Heat Incentive (RHI) come into force today. The non-domestic RHI rewards generators for each kWh of useful heat produced using eligible renewable technologies. This counts towards the UK’s 2020 renewable energy target and helps reduce the UK’s dependence on polluting fossil fuels.

Key changes to the scheme

  • Increased support for:
    • large biomass heat projects
    • deep geothermal heating
    • ground source heat pumps
    • solar heating
  • New support for:
    • air source heat pumps
    • biomass combined heat and power (CHP)
    • on-site combustion of biogas from anaerobic digestion at all scales (previously limited to <200kW)
    • waste-based heating projects using commercial and industrial waste as well as municipal solid waste
  • Preliminary registration for biomethane plants to help developers plan their projects

 

TechnologyCapacityNew tariffAvailable from 
BiogasMedium biogas 200kWth - 600kWth5.9p/kWhAvailable for eligible installations:
• first commissioned on or after 4 December 2013; and
• application made on or after the date of commencement of amendment regulations
Large biogas 600kWth and above2.2p/kWh
Large biomass1MWth and above2p/kWhAvailable from date of commencement of amendment regulations and for all large biomass installations with a date of accreditation on or after 21 January 2013
Solar thermal collectorsLess than 200kWth10p/kWhAvailable from date of commencement of amendment regulations and for all solar thermal collectors with a date of accreditation on or after 21 January 2013
Ground source heat pumpsAll capacitiesTier 1: 8.7p/kWh
Tier 2: 2.6p/kWh
(All capacities of GSHPs)
Available when the amendment regulations come into effect and for all GSHPs with a date of accreditation on or after 21 January 2013
New solid biomass CHP systemsAll capacities4.1p/kWhAvailable for eligible installations:
• first commissioned as part of a CHP system on or after 4 December 2013; and
• application made on or after the date of commencement of amendment regulations; and
• is certified under CHPQA
Air source heat pumps All capacities2.5p/kWhAvailable for eligible installations:
• first commissioned on or after 4 December 2013; and
• application made on or after the date of commencement of amendment regulations
New deep geothermalAll capacities5p/kWhAvailable for eligible installations:
• first commissioned on or after 4 December 2013; and
• application made on or after the date of commencement of amendment regulations