Renewable Heat Incentive

The Renewable Heat Incentive (RHI) has recently been introduced by the Government to encourage householders to switch from using fossil fuel heating systems to renewable energy systems such as Solar Thermal panels.

Premium Payments

One-off "premium payments" are available for domestic properties towards Solar Thermal panels as well as heat pumps and biomass boilers. These payments are on top of the savings you will make every year in fuel costs, and you may also qualify for the annual recurring RHI payments from 2012. The Premium payments for solar thermal systems have been set at £300. For details on eligibility and how to apply, please visit  the Energy Saving Trust website.

Financial rewards

Very much like the Feed-In tariff, the RHI is designed to provide financial support that encourages individuals, communities or small businesses to switch from using fossil fuels for heat. So by switching to a renewable heat source you will not only be cutting your C02 emissions and helping to sustain the planet but you will also be earning a sizable reward.

There are 2 ways you can benefit from the RHI:

1. By switching to a renewable heat source you will reduce or even eliminate your gas or oil costs, depending on how much heat your system can generate. As gas and oil are becoming increasingly expensive each year, you will save money on your bills as you will be producing most if not all of your heat yourself. It does depend on exactly what system you use and the size of the system, as to what the exact tariff level is.

2. Also, now because of the RHI scheme, you as a home owner, with a renewable heat system installed will receive regular payments from the Government. You will be paid 8.5p per kWh of heat or hot water you produce and use yourself! It is estimated that many participants will earn enough money to cover their installation costs in seven to nine years from the registration date. That’s a return of around 12% per year. You will also continue being paid for the heat you use, for twenty years!

For non-residential systems, tariffs payments will start this autumn but for household systems payments won’t start until October 2012. Any suitable systems installed from now onwards will be eligible for the tariffs when they begin next year. For the latest information on the Renewable Heat Incentive visit

If you are interested in installing a solar thermal system please contact Caplor Energy to arrange a free site survey.