The UK Government has called time on its Renewable Heat Incentive (RHI) scheme – but if you are quick you could still capitalise and use RHI payments to help your business benefit from a range of low carbon, cost-saving modern heating system.
Want to know more? Then read on…
The scheme was first introduced in 2011 as a replacement for the Low Carbon Building Programme. It encourages businesses to replace their traditional fossil fuel heat sources with renewable energy.
When a business makes the switch and registers with the RHI scheme, they receive quarterly payments for 20 years. The amount they receive depends on the technology they have chosen to install and the amount of renewable heat they generate.
There are a number of technologies that you could install to help you get your hands on RHI payments, including:
All these technologies can deliver cost and carbon savings, compared with fossil fuel heating systems, as well as being eligible for RHI payments.
The technology that is right for you will depend on your business and its heating requirements.
There is still time to qualify for the RHI scheme, but you do need to get your skates on as the closing date is just a few months away.
No new applications will be considered after 31 March 2021, so time is of the essence. An extension does offer an extra 12 months to complete the process, but this is only applicable where investment has been made in projects before 17 August 2020 and detailed evidence must be available. More information on this can be found on the Ofgem website.
Yes, you can, but you would have a decision to make. The Scottish Government is offering interest-free loans to SMEs for energy-saving and renewable energy measures with substantial cashback. If you use the SME Loan scheme to install renewable heating technology, including ground source heat pumps; water source heat pumps; air source heat pumps; biomass boilers; and solar thermal, you could be entitled to 75% cashback. But, you cannot receive the cashback and the RHI payments.
Whatever you choose to do, it is always important to get good advice on what options are available to you. If you are a Scottish SME, call us on 0808 808 2268 to arrange a free independent review of your operations.
If you liked this blog post, make sure you sign up to our regular ezine, The Bottom Line. It’s an easy way to keep up to date with all the latest updates including grants and funding, free training, case studies, the latest blogs and other useful resources that can help your organisation improve its environmental performance, save resources and save money.
Our free support to business is funded by the Scottish Government and by the European Regional Development Fund through the £73 million Resource Efficiency Circular Economy Accelerator Programme.