How much is the Renewable Heat Incentive Tariff Reduction 2015?

Act now to save money on your energy bill before April 2015

Firstly, what are Renewable Heat Incentive (RHI’s) tariffs? – These are the payment rates for qualifying energy efficient home improvements that produce heat and are payable every quarter year for 7 years.

There are regular reviews built into the tariff rate system to allow for the amount of installations in the UK and dependent on the “take-up” these rates can be adjusted, this is known as “degression” and there is a planned reduction in the rate for Biomass Boilers due in April 2015 as the “trigger: has been passed.

The DECC (Department of Energy and Climate Change) made an announcement in February 2015 that the current biomass rate of 10.98p per kWh (kilowatt per hour) is going to go down by 20% and will be applied at the rate of 8.93p per kWh to new biomass installations after 01/04/2015.

The good news is that Solar Thermal Panels, Air Source Heat Pumps (ASHP’s) & Ground Source Heat Pumps (GSHP’s) tariff are to remain at their current levels and not be reduced in this review period.

Currently all the tariffs are linked to the Retail Price Index (RPI) which broadly means that the rate itself (once set) will keep up with inflation – this means that whatever tariff you get at outset it will go up each year in line with the cost of living.

• Once your tariff is set, this is the one you keep, so if you are already on a higher tariff (or install before the next degression point) then your rate will not be included in the planned degression.
• Details of eligibility can be found here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/403636/2015_Dom-RHI_Regs_Changes_Info_Sheet-_5_February_2015.pdf

There is an online calculator tool here:

https://renewable-heat-calculator.service.gov.uk/