RHI vs FIT schemes

Each and every day we all hear about all these new schemes that the Government releases to encourage us to go green, but what are they?

RHI also known as the Non-Domestic Renewable Heat Incentive is a Government environmental programme that provides financial incentives to increase the uptake of renewable heat. For the non-domestic sector broadly speaking it provides a subsidy, payable for 20 years, to eligible, non-domestic renewable heat generators and producers of biomethane for injection based in Great Britain. Of course this is subject to the detailed scheme rules.

he objective of the Non-Domestic RHI is to significantly increase the proportion of heat generated from renewable sources.  By driving change in a heat sector currently dominated by fossil fuel technologies, the RHI can help the UK meet EU targets to reduce carbon emissions and improve energy security by providing a long term financial incentive.

Applicants need to meet a range of eligibility requirements. These include demonstrating that the heat is used for an eligible purpose, that metering arrangements are appropriate, and that grants have not been received for certain purposes. Further information on how to do this can be found on the Ofgem RHI website.

 

FIT also known as The Feed-in-Tariff scheme is an environmental programme introduced by the government to promote the use of small-scale renewable and low-carbon electricity generation technologies. If a householder, community or business has an eligible installation, FITs pays them a tariff for the electricity they generate and a tariff for the electricity they export back to the grid.

The following technologies are eligible for the scheme:

  • Solar photovoltaic (usually called PV) with a total installed capacity (TIC) of 5MW or less
  • Wind with a TIC of 5MW or less
  • Hydro with a TIC of 5MW or less
  • Anaerobic digestion with a TIC of 5MW or less
  • Micro combined heat and power (CHP) installations with a TIC of 2kW or less.

Please remember that you must make sure that the technology you plan to install must be on the MCS (Microgeneration Certificate Scheme) to qualify, you can find out by clicking here MCS PRODUCT LIST

What is the Difference between the two?

The difference between the two are as follows:

1 – FIT (PV / electric generation) tariff lasts for 20 years while the RHI tariff only lasts 7 years

2- RHI is for  generating heating and hot water through Biomass systems, Solar Thermal and Heat Pumps

The FIT and RHI tarriff was setup to encourage people to think about their energy usage and how it is generated each day.

Please note that the following information was taken from the Ofgem and government website and you can access more information via the following links.

Feed In Tariff/Ofgem
Renewable Heat Incentive/Ofgem

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