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RHI Tariff

Use the table below to find out the payments you can expect to receive from the Renewable Heat Incentive (RHI). The RHI payments are for an agreed 20 year period and you stand to earn tends, or even hundreds, of thousands of pounds through your renewable heating source.

The pence/kWh of metered heat is shown on the table below.

RHI Tariff Tables
Tariff Name	Eligible Technology	Eligible Sizes	Tariff Rate (pence/kWh)	Tariff Duration (Years)	Support Calculation
Small Biomass	Soild biomass; Municiple Solid Waste (inc. CHP)	Less than 200kWth	Tier 1: 8.3	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 1,134
Small Biomass		Less than 200kWth	Tier 2: 2.1
Medium Biomass		200 kWth and above; less than 1000 kWth	Tier 1: 5.1
Medium Biomass		200 kWth and above; less than 1000 kWth	Tier 2: 2.1
Large Biomass		1000 kWth and above	1.0		Metering
Small Ground Source	Ground-source heat pumps; Water-source heat pumps; deep geothermal	Less than 100 kWth	4.5	20	Metering
Large Ground Source		100 kWth and above	3.2	20	Metering
Solar Thermal	Solar thermal	Less than 200 kWth	8.5	20	Metering
Biomethane	Biomethane injection and biogas combustion, except from landfill gas	Biomethane all scales, biogas combustion less than 200 kWth	6.8	20	Metering

How does it work?

Any new or existing installations after 15^thJuly 2009 are eligible to receive the RHI.

Regular payments will be made on a quarterly basis by the regulatory body OFGEM. The payments will be made against the submitted heat meter readings by the customer. The payment made is a simple calculation of pence per kWh x kWh’s used. For biomass, the payment is calculated as per the example below:

Large, Multi-Use Office Block

Annual heat requirement of 600,000 kWh’s
Installed capacity of biomass boiler – 195kW
Tier 1 payment calculated as:
- Capacity of Boiler x Peak Hours x Tier 1 Tariff Level
- This Example: 195 x 1314 x 8.3=£21,267.09 per annum
Tier 2 payment calculated as:
- Annual requirement – Peak kWh x Tier 2 Tariff
- This Example: 600,000kWh – (195 x 1314) x2.1= £7,219.17 per annum
Annual RHI payment would be:
- £21,267.09 + £7,219.17 = £28,486.26

The typical cost to install a 195kWh wood pellet boiler is around £100,000 which includes the use of a pre-packaged plant room or heat cabin. As you can see from the worked example, not only is the payment from the RHI significant, but with a payback of 5 years, users benefit from an income stream of circa £28,000 for a further 15 years. Add to this the 25% savings on fuel costs compared to heating oil and the financial benefits of switching into wood pellets are persuasive.