What is the RHI scheme?
RHI stands for “Renewable Heat Incentive”. This is a government based scheme which has identified the need to promote the use of wood pellet fuel within the heating sector. The RHI will make significant quarterly payments for 20 years, to domestic and commercial properties which heat using a renewable fuel such as wood pellets.
I have a B&B, Guest House, Holiday Let Property, Hotel etc. – will I get the RHI
payments?
Yes – this has been announced and you are entitled to the following for a commercial property:
From October 2012 you will receive quarterly payments for the next 20 years. The payment amount is based on the heat output of your wood pellet hydro boiler. The value is approximately £2,200 per year for the next 20 years based on our 22kW hydro stove if it is installed within your property.
I have a domestic house – will I get the RHI payments?
Yes – From October 2012, domestic homes will be able to join the RHI scheme. Before that, in order to encourage take-up of renewable heat technologies, RHI 'Premium Payments' will be made available from July 2011. These will be one-off payments to help homes cover the initial cost of getting a new renewable heating system installed. It's thought the £15m set aside for this will help around 25,000 households. For a wood pellet biomass hydro stove you will initially receive £950.00 followed by the RHI payments from October 2012 (the domestic RHI value is still to be announced).
What is an example of the financial payback time if I install a 22kW hydro
stove?
If you have a commercial property (B&B, Guest House, Holiday Let Cottage, and Hotel) then the 22kW hydro stove plus complete installation may cost £8,000. You will receive approximately £2,200 per year for 20 years from RHI payments for the 22kW size of boiler. In addition the efficiency of the hydro stove running costs against oil would be approximately a 50% saving on fuel. This could be a £500 to £1000 saving per year. It is entirely realistic that your 22kW hydro stove and installation are completely repaid within a 3 year period.
For domestic properties there is the £950 “Premium Payment” followed by the RHI value. This is expected to be an equally attractive investment.
Is there any other financial assistance?
Yes, the Scottish government has just announced interest free loans up to £2000 towards the purchase of our wood pellet stoves for domestic houses. This is available from 1st April 2011 and is on a first come first served basis with a limited fund available.
For commercial properties or businesses there are interest free loans available from £1,000 to £100,000.
Please contact the Energy Saving Trust for further details www.energysavingtrust.org.uk Tel: 0800 512 012.
What appliances qualify for the RHI payment scheme?
Only the Hydro stoves as they are MCS registered and able to heat radiators, underfloor and hot water. This is the proposed requirements of the
RHI.
Do I need an MCS registered installer to qualify for RHI?
Yes, Greenflame Technology is MCS accredited for biomass installations and technically trained on the product range. We can arrange the complete installation service anywhere within Scotland and the North of England.