Tariffs and payments for the Renewable Heat Incentive (RHI)

Renewable Heat Incentive – Tariff Adjustment

For the year from 1 April 2013

The RHI is a Government environmental programme that provides financial incentives to increase the uptake of renewable heat. Under the Scheme Regulations 2011, we have the function of adjusting the RHI tariffs by the percentage increase or decrease in the retail price index (RPI) for the previous calendar year (Regulation 37(7)b).

The increase in the RPI for the calendar year 2012 was 3.1% (see Office for National Statistics: http://www.ons.gov.uk/ons/rel/cpi/consumer-price-indices/january-2013/cpi-and-rpi-reference-tables.xls ). The tariffs are therefore increasing by this amount, with the resulting figure being rounded, in line with the Regulations, to the nearest tenth of a penny, with any twentieth of a penny being rounded upwards.

The below table provides the tariffs for the period from the 1 April 2012 to the 31 March 2013, and the adjusted tariffs for the year from 1 April 2013. Heat generated and used for eligible purposes will be paid the 2012-13 tariffs up to 31 March, and from 1 April 2013 the new tariffs will automatically be applied on the RHI Register. For a period that spans the RPI change, periodic support payments will be made pro-rata to account for the change in tariffs.

For further information on the RHI, please see our Guidance Documents and other information on our website: http://www.ofgem.gov.uk/E-SERVE/RHI/Pages/RHI.aspx.
If you have any queries on the administration of the RHI, please contact us at RHI.Enquiry@Ofgem.gov.uk or by phone on 0845 200 2122.

Tariffs

The following table shows current tariff levels for each of the supported technologies. Each year tariffs are adjusted for inflation in line with the Retail Price Index

Tariff Name
Eligible Technology
Eligible Sizes
Tier
Previous tariff (pence/kWhth) -
Up to 31.3.13
New rounded tariff (pence/ kWhth)- from 1.4.13
Small commercial biomass
Solid biomass including solid biomass contained in municipal solid waste (incl. CHP)
Less than 200 kWth
Tier 1

 

8.3

 

8.6
Tier 2

 

2.1

 

2.2
Medium Commercial Biomass
200 kWth and above; less than 1,000 kWth
Tier 1

 

5.1

 

5.3
Tier 2

 

2.1

 

2.2
Large Commercial Biomass
1,000 kWth and above
N/A
1
1
Small Commercial heat pumps
Ground-source heat pumps; Water Source heat pumps; deep geothermal
Less than 100 kWth
N/A

 

4.7

 

4.8
Large Commercial heat pumps
100 kWth and above
N/A

 

3.4

 

3.5
All solar collectors
Solar collectors
Less than 200 kWth
N/A

 

8.9

 

9.2
Biomethane and biogas combustion
Biomethane injection and biogas combustion, except from landfill gas
Biomethane all scales, biogas combustion less than 200 kWth
N/A
7.1
7.3

Payments

The RHI provides financial support for renewable heat technologies for the lifetime of the installation (to a maximum of 20 years). We make payments on a quarterly basis. Once you are accredited under the RHI, a tariff level will be assigned to your installation based on its technology (e.g. biomass, heat pump, solar) and size and payments will be made based on the actual heat output of the system.
Payments begin to accrue from the date of accreditation of the installation. The date is confirmed in the accreditation confirmation letter emailed to successful applicants.

How payments are calculated

You are paid a certain amount per kilowatt hour (kWhth).
For a simple system: This is calculated by multiplying the appropriate tariff by the amount of eligible heat generated in the relevant quarterly period. The formula is:
Payment = Tariff level x Heat generated by RHI installation

For a complex system: Once you have entered the meter readings and the three heat data figures required the IT system on the RHI Register will calculate and display the ‘Eligible Heat Output’ (EHO) figure in kWhth. This is the amount that will be multiplied by your tariff to determine the payment amount.

The formula to determine how many kWh have been produced is:
Eligible heat used on system * Heat generated by RHI Installation
Total heat generated on system

Payment examples
See worked examples of how to calculate payments for both simple and complex heating systems on pages 46-47 of RHI Main Guide Volume 2: Ongoing obligations, payments.

Payments for biomethane producers
Registered producers of biomethane have a separate payment calculation formula because heat is not generated in the biomethane injection process. For information see RHI Volume 2, chapter 5, page 51.

Source: Biogas

For more information on: Biogas