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Plumbing. Heating. Conditioning. Energy Efficiency.

Earning for Biomass Burning

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14:00 26 December 2012

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 The Renewable Heat Incentive (RHI) was introduced in November 2011 to encourage investment in technologies like biomass boilers, ground source heat pumps and solar thermal. In addition to gaining a revenue stream from the RHI, farmers who invest in new heating systems can gain additional benefits by saving on their fuel bills, reducing carbon emissions and investing in a modern heating system that benefits the environment.  

The RHI makes quarterly payments based on meter readings in respect of the heat produced by the system. Payments are made for twenty years from the date of entry to the scheme and are made directly to the owner of the installation by Ofgem. In addition, payments are index-linked and vary according to the size and technology of the installation.
However, the results of the recent spending review should engender confidence as the RHI scheme is set to provide support amounting to £70 million a year, with applications above this threshold being suspended until the following year. According to Ofgem’s recent quarterly report the amount of periodic payments made under the RHI between November 2011 and June 2012 amounts to £350,594. The report can be accessed by clicking here.  
In its recent consultation document entitled Renewable Heat Incentive: Proving Certainty, Improving Performance (Consultation) the Department of Energy and Climate Change (DECC) has set the allocated expenditure for 2012/13 at £18 million - this is a projection based on the total number of RHI applications received to date. The Consultation suggests that uptake has been slow with only 128 installations having been accredited by 8 July this year. However, regard must be had to the fact that, of the 670 applications for accreditation that were received, Ofgem approved only a small proportion due to receipt of defective submissions (for example, applications that were inconsistent, incomplete or confusing were returned).
 

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