Renewable Heat Incentive
SAVE MONEY BY INVESTING IN RENEWABLE HEAT TECHNOLOGY
NON DOMESTIC [commercial, industrial, public sector, not for profit]
• Woodpecker wood pellet boilers are a qualifying technology.
• Support is for all non-domestic sectors.
• RHI payments to be claimed by, and paid to, the owner of the heat installation.
• Payments to be made quarterly over a 20 year period.
• For plants up to 45KWth, both installer and equipment have to be certified under the Microgeneration Certification Scheme (MCS).
• Tariff levels calculated to bridge the financial gap between the cost of conventional and renewable heat systems.
• Heat output to be metered and the support calculated from the amount of eligible heat multiplied by the tariff level.
• Eligible installations completed on or after 15th July 2009, but before the start of RHI, will be eligible for support as if they had been installed on the date of its introduction.
• OFGEM (The Gas and Electricity Regulatory Authority) will administer RHI.
• RHI will be funded from general Government spending.
|
Tariff Name |
Eligible technology |
Eligible Sizes |
Tariff Rate (pence/kWh) |
Tariff Duration (Years) |
Support Calculation |
|
Small Biomass |
Wood Pellet, Wood Chip, Logs |
Less than 200kWth |
Tier 1: 7.9p |
20 |
Metering Tier 1 applies annually up to the Tier Break.Tier 2 above the Tier Break.The Tier Break is installed capacity x 1,314 peak load hours, i.e: kWth x 1,314 |
|
Tier 2: 2p |
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|
Medium Biomass |
200kWth and above; less than 100kWth |
Tier 1: 4.9p |
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|
Tier 2: 2p |
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|
Large Biomass |
1000kWth and above |
1.0p |
Metering |
EXAMPLES:
|
45kW Boiler at 15% load |
|
|
RHI Receivable over 20 years |
£93,420 |
|
Pellet cost over 20 years |
£51,200 |
|
NET INCOME |
£42,220 |
An oil boiler over this 20 year period would have consumed £73560 in fuel. Excluding capital cost the oil boiler would have cost £112240 more over the 20 year period - £5612 per annum.
|
150kW Boiler at 15% load |
|
|
RHI Receivable over 20 years |
£367,578 |
|
Pellet cost over 20 years |
£170,666 |
|
NET INCOME |
£196,912 |
An oil boiler over this 20 year period would have consumed £572,840 in fuel. excluding capital cost the oil boiler would have cost £647,160 more over the 20 year period - £32,358 per annum
DOMESTIC
• RENEWABLE HEAT PREMIUM of £950 for qualifying renewable heating systems (such as wood pellet boilers) paid as a one-off sum.
• Tariff system, similar to the non-domestic system announced in March 2011, to be introduced for domestic installations in the autumn of 2012.
