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Keep warm and make money with Renewable Heating

You may be entitled to receive government funded income by installing renewable heat in your property.

Last year, the Government announced the introduction of a Renewable Heat Incentive (RHI) policy which is set to completely revolutionise the way heat is generated and used.

The scheme grants, for a period of 20 years, regular financial support to providers of renewable heat. Currently the scheme will apply only to non-domestic sectors such as industrial, business and public sectors. From 2012, the Government has announced that there is to be a second phase to the scheme implemented which will establish support for the domestic sector also. In effect this will see financial support being provided to domestic users of renewable heat.

How will it work?

Ofgem will administer the scheme and will produce guidance setting out all the eligibility criteria. As of yet, there is no guidance on renewable heating systems and eligibility, although there is draft guidance relating to the non-domestic sector. This can be found at: www.ofgem.gov.ukOnce guidance is in place, your renewable heating system must satisfy the conditions set out in that guidance.

Provided the conditions for your installed renewable heating system are satisfied, RHI payments will be made quarterly for a period of up to 20 years. The tariffs will be adjusted annually to reflect inflation.

The level of income that will be received will depend on the size and the type of technology installed. In order to calculate the income support, the appropriate tariff set at the time will be multiplied by the eligible heat used.

The domestic sector

When phase 2 of the scheme comes into force in October 2012, the RHI will apply to all homeowners in the domestic sector by entitling owners of domestic renewable heating systems that have been installed since 15 July 2009 to regular income support. This is set to come into force in the autumn of 2012.

At this stage, the scheme and the extent of its impact on the domestic sector has yet to be officially codified. Here at Linder Myers, we will of course be following the developments of the RHI intently and it’s evolving impact on the property sector.

Come 2012, should you decide to install a system of renewable heat production in your property to increase your income, we at Linder Myers have the expertise to advise you of the legal requirements of the RHI scheme and how the RHI will affect you and the value of your property.

Find out more about our Commercial Property department
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