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:
- RHI policy and regulation
- RHI applications and administration
- Interaction between the RHI and Renewables Obligation
Other Topics
Previous: Renewables Obligation
Next: Feed-in Tariff
