Find out how you can now earn more with the Renewable Heat Incentive - March 23, 2012

As of 1st April 2012, the Renewable Heat Incentive (RHI) tariffs for commercial installations are set to increase by a substantial 4.8%.

The RHI tariffs are reviewed on a yearly basis and are adjusted by the percentage increase in the retail prices index (RPI) for the previous calendar year.

The RPI increase for 2011 was 4.8%, however the resulting figures are rounded up, meaning that some tariffs have increased by as much as 6.24%!

These higher tariffs will be paid from 1st April 2012 to both new entrants to the scheme, as well as currently registered users of eligible renewable heat systems.

For example, the tariff paid for small commercial biomass has increased from 7.9p to 8.3p per kWhth. The tariff for a solar thermal system has increased from 8.5p to 8.9p per kWhth.

Table content published by Ofgem on 16th March 2012


The Renewable Heat incentive is currently open for commercial applications and expected to be open for domestic applications later this year.

However, that doesn’t mean that you can’t install your renewable heating system and start benefitting from reduced energy bills and clean energy in the mean time.

The RHI is a great incentive which means that registered users of the scheme can be paid for the renewable heat they generate, enabling you to benefit financially from using renewable energy and lowering your carbon footprint.

Eligible energy sources for the commercial sector

  • Biomass boilers
  • Biogas combustion (only up to 200kWth)
  • Deep Geothermal
  • Ground Source Heat Pumps (heating water)
  • Energy from biomass proportion of Municipal Solid Waste
  • Solar Thermal (up to 200kWth)
  • Water Source Heat Pumps (heating water)
  • Renewable district heating- if it uses one of these eligible technologies at the same tariff level as stand-alone systems

Other technologies are currently being considered for inclusion, such as Air-source heat pumps, hot air heating (e.g. kilns), bioliquids and landfill gas. An announcement on this is expected to be included in Phase 2 of the RHI consultation, due for release this year.

To read more about the RHI scheme, who is eligible and how to register please click here. Alternatively, please feel free to call us on 0845 257 0041 and we will be happy to answer any queries you may have.

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