Renewable Heat Incentive

The government has launched the world’s first long term financial support programme for renewable heat; the RHI. The Renewable Heat Incentive is a payment made to the owner on a quarterly bases for the renewable heat that is generated from there system.

There is currently two parts to the RHI:

Phase 1: RHI for “Non Domestic” installations which are currently available to industry, businesses and public sector organisations.

Phase 2: RHI for “Domestic” installations was launched in July 2014 and is available for the home owner.

The RHI is intended to encourage the installation of renewable equipment such as renewable heat pumps, biomass boilers and solar thermal panels to aim to reduce the amount of carbon emissions.

Eligibility

The following heat technologies are eligible for the RHI:

  • Biomass Boilers
  • CHP - Combined Heat & Power
  • Biogas Combustion (Only up to 200kWth)
  • Deep Geothermal
  • Ground Source Heat Pumps (Heating Water)
  • Energy from biomass proportion of Municipal Solid Waste
  • Solar Thermal (Only up to 200kWth)
  • Water Source Heat Pumps

The biomass boiler systems that Edge Renewables install will all be suited for the RHI scheme. It is important to invest in top quality equipment as the RHI is for a period of 20 years and any boiler replacement would mean re-application to the scheme which may or may not be available.

Edge Renewables will create and manage the RHI application for all customers. We were one of the first companies to gain approval for a biomass boiler system in the United Kingdom and have gained approval for over 450 boiler systems. The expertise within the team that deal with RHI will mean that you never forget to miss your meter reading.

Boiler rating (kW) 50 199 500 950
Tier 1 rate 2.95 2.95 5.24 5.24
Tier 2 rate 0.78 0.78 2.27 2.27
Load Factor annual (%) 25 25 25 25
Peak load Hours 2,190 2,190 2,190 2,190
Total Annual kWh of Heat 109,500 435,810 1,095,000 2,080,500
Tier 1 Break (peak load hours) 1,314 1,314 1,314 1,314
Max kWh at Tier 1 rate 65,700 261,486 657,000 1,248,300
Tier 1 RHI payment £1,938 £7,714 £34,427 £65,411
Tier 2 RHI payment £342 £1,360 £9,943 £18,891
Total Annual RHI payment £2,280 £9,074 £44,369 £84,302
Average RHI rate 2.08 2.08 4.05 4.05
Oil Equivalent (ltrs) 12,153 48,370 121,532 230,910
Oil Equivalent £ (50p) £6,077 £24,185 £60,766 £115,455
Gas Equivalent (ltrs) 18,434 73,369 184,343 350,253
Gas Equivalent £ (32p) £5,899 £23,478 £58,990 £112,081
Tonnes of woodchip 41 161 406 771
Wood Chip Cost (£100 Tonne)
(90% Efficiency)
£4,056 £16,141 £40,556 £77,056
Total Savings £4,301 £17,117 £64,580 £122,701

Payments as an example

 

500kW x 1314 = 657,000 kWh at Tier 1 tariff (5.12p) =£33,638.00

500kWx 876 = 438,000 kWh at Tier 2 tariff (2.24p) = £9,811.00

Total Payments per year = £43,450.00

Annual Savings (Oil Cost-Woodchip Cost) = £16,155.00

Total Savings = £59,604.00

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