How does the Renewable Heat Incentive (RHI) Work?

How does the Renewable Heat Incentive (RHI) Work?

The Renewable Heat Incentive (RHI) is a Government scheme that rewards people who use renewable energy to heat their buildings in England, Scotland and Wales.

It does so by paying them for the energy they produce as part of the UK’s effort to reduce carbon emissions from heating and to produce 12 per cent of its heat from renewable sources by 2020. 

What is the RHI?
  • The domestic RHI makes quarterly payments to people using renewable technologies to heat their homes for a period of seven years.
  • How much you receive depends on how much personal energy you use and how much heat you produce. From sustainable wood pellet-fuelled heating, you could receive a quarterly payment for all the hot water and heat you generate and use. You can find the latest tariff levels and tiers here.
  • The non-Domestic RHI for commercial users provides quarterly payments for renewable heating for the longer period of 20 years. This makes it a very attractive long-term investment.
  • Although the Government has announced it is considering changes to the RHI, no new decisions have yet been made.
Why was the RHI introduced?
  • The UK needs to move away from the fossil fuels of the past in order to combat climate change. The RHI incentivises people to use low-carbon, sustainable heating technologies – like the ones fuelled by our compressed wood pellets – as an alternative to traditional central heating systems that burn oil, LPG or gas.
 Who’s eligible for the RHI?

The RHI is open to any individual and any business investing in renewable technology for their heating and hot water requirements.

About Billington Bioenergy

Billington Bioenergy is the UK’s leading supplier of wood pellets for heating. To find out more about how we can help you, give us a call on 0330 9950270, email or fill in this form.

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