Renewable Heat Incentive

Commercial & Businesses

Tariff Rates from 1st July 2014 RHI Tariff Cutoff ( Heating Hours/Year) 1314 – Wood fuel Boiler Efficiency assumed 85% – Fossil fuel Boiler Efficiency assumed 90%

  Scenario One Scenario Two Scenario Three Scenario Four
Boiler Size (kw) 46 80 120 195
Annual Heat Emittance(kwH/Year)Optimum Operation of 1314 hrs/annum 60,444 105,120 157,680 256,230
Displaced fossil Fuels Oil Oil OIl Oil
Annual Heat Emmitence (kWh/Year) 6.5 6.5 6.5 6.5
RHI Size Catagory (S.M.L) S S S S
Annual Heating Hours 1,314 1,314 1,314 1,314
Annual RHI Income (£/Year) £5,017 £8,830 £13.245 £21,965
Wood Fuel Price (£/t) £135 £135 £135 £135
Woodfuel Moisture Content (%/wk) 20% 20% 20% 20%
Annual Woodfuel Demand (t/Year) 17 30 45 73
Annual Woodfuel Cost (£/Year) £2,339 £4,068 £6,102 £9,916
Net Annual Revenue ( RHI Fuel Cost in £/Year) £2,738 £4,762 £7,143 £12,049
Annual Fossil Fuel Cost Saved (£/Year) £4,365 £7,592 £11.388 £18,506
Total Annual Savings (£/Year) £7,103 £12,354 £18,531 £30,555



Domestic RHI

Payments for the domestic RHI are based on the annual heat demand of your property which is estimated by the production of an Energy Performance Certificate. If you choose the example property size that most closely represents your home, you will be able to see its typical average heat demand. You can also see what the current estimated cost of heating that size property is, depending on which fossil fuel heat source you currently use. At the bottom of the table you can then see a rough idea of the annual RHI payments that you could receive for your property size, by installing one of the four eligible RHI technologies.


Eligibility Criteria for the RHI

  • Systems need to have been installed after 15 July 2009.
  • Installed equipment must be new.
  • Installations have to be equipped with heat meters to monitor heat usage on site.
  • The heat has to be used on site for an existing or new requirement i.e. the heat generated must be usable and useful and not solely to claim the RHI.
  • The heat can be used to either heat space or heat hot water for direct use.
  • Equipment must meet the required emissions limits and all relevant test certification.


Renewable Heat Incentive (RHI)

The Renewable Heat Incentive (RHI) is a financial support scheme which will provide long-term financial incentives for installations of renewable technologies which generate heat. The RHI is designed to encourage the uptake of renewable heat, and is similar to the Feed-In Tariffs (FITs) for consumers generating their own electricity. The scheme is governed by Ofgem Both domestic and commercial installs are eligible for the incentive, with current tariff levels offering 8.4p/kWth across 20 years for commercial and 12.2p/kWth spanning 7 years for domestic boilers (under 200kWth rated output). Due to the introduction of the RHI, it is achievable to earn a 12% ROI per annum with the installation of a biomass system.


RHI Earnings and Comparison

  1-bed semi-detached 2-bed semi-detached 3+ bed detached
Example annual heat demand
9,000 13,500 23,000
Estimated annual cost of current heating system(b)
Gas £447 £671 £1,143
Electricity £1,477 £2,215 £3,774
Oil £579 £868 £1,479
LPG £773 £1,160 £1,976
Coal £353 £529 £902
Estimated annual RHI payment(c)
Biomass Boiler £1,098 £1,647 £2,806


For more info on the non-domestic RHI scheme

just click the button to see Ofgem’s comprehensive guide on RHI