To encourage the uptake of renewable energy in homes and business across the UK, the british Government created financial incentives – the Feed in Tariff (FIT) and the Renewable Heat Incentive (RHI).
The Renewable Heat Incentive (RHI) 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 which is payable for 20 years to eligible non-domestic renewable heat generators and producers of biome thane for injection based in Great Britain.
Ofgem is responsible for implementing and administering the scheme on behalf of the Department of Energy and Climate Change (DECC).
By providing a long-term financial incentive, the objective of the non-domestic RHI is to significantly increase the proportion of heat generated from renewable sources. By driving change in a sector currently dominated by fossil fuel technologies, the RHI can help the UK meet EU targets to reduce carbon emissions and improve energy security.