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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
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
Tier 2: 2.1
Medium Biomass 200 kWth and above; less than 1000 kWth
Tier 1: 5.1
Tier 2: 2.1
Large Biomass 1000 kWth and above
Small Ground Source Ground-source heat pumps; Water-source heat pumps; deep geothermal Less than 100 kWth
Large Ground Source 100 kWth and above
Solar Thermal Solar thermal Less than 200 kWth
Biomethane Biomethane injection and biogas combustion, except from landfill gas Biomethane all scales, biogas combustion less than 200 kWth

How does it work?

Any new or existing installations after 15thJuly 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.