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…
What is the Non-Domestic RHI scheme?
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.
What technologies are eligible?
There are a number of technologies that you could install to help you get your hands on RHI payments, including:
- Biomass
- Combined heat and power (CHP) systems
- Heat pumps (ground source, water source and air source)
- Solar thermal
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.
What do I do now?
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.
- Decide what technology is most suitable for your needs. If you’re a Scottish SME, our advisors can provide you with free advice to help you identify opportunities.
- Check with your local authority to see if you require planning permission
- Speak to installers and get quotes for the work.
- Book a date when the work will start. Remember, you are against the clock so don’t leave it too late.
- Have the system commissioned and receive your Microgeneration Certification Scheme (MCS) certificate, where necessary.
- Put in your application for RHI.
- Sit back, enjoy your energy savings and wait for the payments
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.
Can I use RHI with a Scottish Government SME Loan?
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.
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