The introduction of the Renewable Heat Incentive Scheme (RHI), originally launched by the Government in 2011, has always been a hot topic for many businesses and households.
Is making the switch to renewable energy sources worth it, considering the substantial outlay required?
The RHI scheme sought to ease the burden of businesses and households by offering payments and rewards for the clean, renewable energy that their system produces.
There were several different systems that would be eligible for the payments:
- Air Source heat pumps
- Ground source heat pumps
- Biomass systems
- Solar Thermal systems
However, some systems, such as air-to-air heat pumps, were not eligible for the RHI payments.
Qualifying payments were usually made quarterly for up to seven years after the original application, and as of March 2024, 112,892 GWh worth of heat generated has been paid for by both the domestic and non-domestic schemes.
As of March 2024, over £5.94 billion had been paid out for non-domestic RHI alone.
Despite several extensions to the application deadline, new applications for domestic RHI payments closed completely in March 2023 (March 2021 for most non-domestic applicants).
As a result of this, a surge of applications were made in 2021.
Can I still claim RHI payments?
Whilst you may not be eligible to apply for a new RHI payment, those moving into properties that already benefit from RHI payments may be eligible to apply for the remainder of the payments.
Given that applications may have been made as late as March 2023, there is the possibility that RHI payments could be claimed until 2030.
It could therefore be advantageous for those moving homes to enquire as to their eligibility.
A successful sheme?
The RHI scheme has been the subject of both criticism and praise from both users and industry.
Whilst the scheme has meant that renewable energy sources became more accessible for those who may have been previously reluctant to make the transition, critics have pointed out that the narrow scope of the eligible energy sources has caused a hindrance to innovation to new schemes.
Applicants to the scheme have also faced delays in their applications being processed (as some remain outstanding now) and because of their RHI payments being delayed, have faced hardship as a result.
It is difficult to avoid the figures above being paid out, however – which represents a significant investment into the renewable energy sector.
Zero hour
Given the growing international push towards net zero, does ending the RHI scheme in its entirety threaten the UK’s prospects of meeting the net zero targets?
Or is this a sign that a further scheme may soon be unveiled?
Surely, the Government will (and must) introduce a novel regime to encourage cleaner and renewable energy provision.
If you’d like more advice on handling the legal challenges that renewable energy schemes bring, contact Patrik Jones-Wright at pjw@dynesolicitors.co.uk or on 01829 773 107.