The Renewable Heat Incentive (the RHI) is a payment system in England, Scotland and Wales, for the generation of heat from renewable energy sources. Introduced on 28 November 2011, the RHI replaces the Low Carbon Building Programme, which closed in 2010.
The RHI operates in a similar manner to the Feed-in Tariff system, and was introduced through the same legislation - the Energy Act 2008.[1] In the first phase of the RHI cash payments are paid to owners who install renewable heat generation equipment in non-domestic buildings: Commercial RHI.
The RHI went live on 28 November 2011 for non domestic buildings. The Coalition Government confirmed its support for the RHI in the October 2010 Spending Review and published details on 10 March 2011.[2] The RHI was extended to domestic buildings on 9 April 2014 after a further series of delays. Three consultations were launched which included proposed domestic tariffs and a long discussion on eligible technologies along with changes to the Non-domestic RHI which included proposals to triple the tariffs for ground source heat pumps and the proposed addition of a tariff for Air to Water Heat Pumps.
Investment in low carbon technologies is a private investment for a public benefit. The RHI is due to end on 31 March 2022. The Government has not announced how it will encourage low carbon heating after 31 March 2021, or the supply chains on which it relies.