Combined Heat and Power Focus

DECC's Free resource supporting the development of CHP

CHP Helpline 0845 365 5153 or 01235 753033

Renewable Heat Incentive

The Renewable Heat Incentive (RHI), launched in November 2011, is a DECC initiative designed to provide support to renewable heat technologies in order to increase deployment and aid market development with the ultimate aim of reducing cost of installation.

Any useful heat produced by a renewable fuel fired CHP generator that is used for process, water, space or district heating will qualify for RHI payments only if the ROC uplift for GQCHP is not claimed. Qualifying useful heat must be measured by correctly installed heat metering equipment. Please note that heat utilised to produce or process the renewable fuel, or used for electricity generation does not qualify for RHI.

Eligible renewable CHP technologies and support levels

The rate at which RHI is paid to a renewable CHP plant is dependent on its thermal output capacity and fuel type. The following table shows RHI tariff banding and rates relevant to renewable CHP:

Tariff band name

Eligible technology

Eligible sizes

Tariff rate p/kWh
Until 31/03/12

From 01/04/12

Small Commercial Biomass

Solid biomass including solid biomass contained in municipal solid waste (incl. CHP)

Less than 200 kWth

Tier 1: 7.9

Tier 1: 8.3

Tier 2: 2.0

Tier 2: 2.1

Medium Commercial Biomass

200 kWth and above; less than 1,000 kWth

Tier 1: 4.9

Tier 1: 5.1

Tier 2: 2.0

Tier 2: 2.1

Large Commercial Biomass

1,000 kWth and above

1.0

1.0

Biomethane and biogas combustion

Biomethane injection and biogas combustion, except from landfill gas

Biomethane all scales, biogas combustion less than 200 kWth

6.8

7.1

For small and medium scale solid biomass technologies, the tier one tariff rate applies up to the tier break. The tier break is defined as the installed thermal capacity of the CHP unit multiplied by 1,314 peak load hours. Tier 2 applies to any qualifying useful heat produced above the tier break.

DECC is responsible for the policy and regulation support and Ofgem are responsible for the administration of the scheme.

Further information can be found by clicking the following links:

  
Other Topics

 

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What's New

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UK CHP Development Map Screenshot

The UK CHP Development Tool is the latest version of the map, originally developed as a tool aimed at assisting power station developers consider the opportunities for supplying heat and development of combined heat and power (CHP) as required under planning policy. However, it can also be used by both small and large organisations to help identify the locations where the supply of CHP heat would have the greatest potential, and therefore the largest positive environmental impact.

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