Guide to Renewable Heat
to Feed in Tariffs
Tax Relief Advantages
What is the Renewable Heat Incentive?
It is a payment for generating heat from renewable
sources. Like the Feed-In Tariffs, it is set by
Government. The RHI is administered by the official
regulator Ofgem who pay the tariffs with money from the
How much is the Renewable Heat Incentive worth to
First of all you will save money by eliminating or
reducing your need for gas or oil, both of which are
becoming increasingly expensive year-on-year.
Secondly, you will be paid up to 8.5p/kWhr for the hot
water and heat you generate and use yourself. It depends
on exactly what systems you use and how large they are
as to what the exact tariff level is.
You can find information on all the various renewable
energy systems you can use at our page on eligible
How long do the tariffs last?
They are paid for 20 years from the registration date
and index-linked for inflation.
Is that long enough to cover the installation costs?
In most cases the simple answer is yes. We estimate that
many participants will earn enough money from the
tariffs to pay off their installation costs in about
seven to nine years. According to the Government, which
has set the tariff levels, the average for most systems
be a return of around 12% per annum.
When do they start?
Tariffs will be paid from July 2011 for non-residential
systems and from Autumn next year for residential
systems. However, any suitable system installed
from now onwards will be eligible for the tariffs when
Are there any restrictions?
The tariffs apply to the technologies listed on this
site. There are various technical and accreditation