The Renewable Heat Incentive (RHI) is a government environmental programme that provides financial incentives to increase the uptake of renewable heat. It provides subsidies to eligible, businesses and domestic renewable heat generators and producers of biomethane based in the UK and Northern Ireland, payable for the life of the installation or up to a maximum of 20 years.
The Northern Ireland RHI (NIRHI) policy and tariff rates are set by the Department of Enterprise, Trade and Investment (DETI). It is designed to help reduce heat energy bills and try and help Northern Ireland reach their target of increasing renewable heat use to 10% by 2020.
The RHI provides financial support for renewable heat technologies for the lifetime of the installation (to a maximum of 20 years). Payments will be made on a quarterly basis and determined by the actual heat output of the system therefore heat meters will be required for each installation.
Under the Renewable Heat Incentive Scheme Regulations (Northern Ireland) 2012, the RHI tariffs must be adjusted annually in line with the retail price index (RPI) for the previous calendar year. DETI must make the necessary calculations and publish the revised tariffs and Ofgem, as administrators of the scheme, must take account of the tariff changes and ensure they are applied.
Commercial RHI payments
Any business that has a large heating bill and converts from oil or gas to Biomass heating, Ground Sourced Heat Pump (GSHP), Geothermal, Biomethane and Solar Thermal. The boiler/generator must have been installed after September 2010 to be eligible. In the context of the scheme, a non-domestic installationis a renewable heat unit that supplies large-scale industrial heating right down to small community heating projects. This includes small businesses, hospitals, schools, Chicken Houses, Hotels, Nursing Homes and so on, as well as district heating schemes (for example where one boiler serves multiple homes.The tariffs that will be implemented are detailed below:
This applies to installations using solid biomass; municipal solid waste (including combined heat and power).
| Size range | NI RHI tariff (pence per kWh) | Length of tariff |
| Less than 20kWth | 6.6 | 20 years |
| 20kWth and above, up to but not including 100kWth | 6.3 | 20 years |
| 100kWth and above, up to but not including 1000kWth | 1.5 | 20 years |
This applies to installations using water source heat pumps and deep geothermal.
| Size range | NI RHI tariff (pence per kWh) | Length of tariff |
| Less than 20kWth | 8.9 | 20 years |
| 20kWth and above, up to but not including 100kWth | 4.5 | 20 years |
| 100kWth and above | 1.5 | 20 years |
This applies to installations using solar thermal panels.
| Size range | NI RHI tariff (pence per kWh) | Length of tariff |
| Below 200kWth | 9.0 | 20 years |
This applies to installations using biomethane injection and biogas combustion, except from landfill gas.
| Size range | NI RHI tariff (pence per kWh) | Length of tariff |
| Biomethane all scales, biogas combustion less than 200kWth | 3.2 | 20 years |
Domestic RHI payments have two elements, an upfront payment paid when you are accepted into the scheme and an ongoing incentive payment paid annually. The upfront payment is a set amount based on your technology and the ongoing payment varies depending on the heat requirements/use in your property.
| Type of heating | Payment |
| Biomass | £2,500 |
| Air source heat pump | £1,700 |
| Ground source heat pump | £3,500 |
| Solar thermal | £ 320 |
If you have already received support under the RHPP you will receive the ongoing payment only.
The ongoing payments are calculated multiplying a tariff with the heat demand/use in your home.
The current tariff rates in pence per kilo watt hour (p/kWh) are as follows:
The ongoing payments are calculated multiplying a tariff with the heat demand/use in your home.
The current tariff rates in pence per kilo watt hour (p/kWh) are as follows:
| Type of heating | Tariff |
| Biomass | 5.6p/kWh |
| Air source heat pump | 3.5p/kWh |
| Ground source heat pump | 8.2p/kWh |
| Solar thermal | 13.5p/kWh |
You benefit by getting free heating and an additional income source. This effectively means you are being paid to heat your own home. Applications can be made from Autumn 2012 and will not close until 31st March 2020.