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Renewable Heat Incentive

Eligible installations, such as anaerobic digestion plants, can receive subsidies under the non-domestic renewable heat incentive (RHI). RHI payments are made quarterly over 20 years and vary according to the amount of heat generated, depending on the build date. Tier one subsidies apply to plants producing less than 40,000 MWh, tier two applies to production between 40,000 MWh and 80,000 MWh and tier three applies to production in excess of 80,000 MWh.

Applications for RHI submitted before 1 April 2016 have their tariffs adjusted in line with the Retail Prices Index (RPI). Applications submitted on or after 1 April 2016 have their tariffs adjusted in line with the Consumer Prices Index (CPI). The scheme is scheduled to close to new plants in 2021.

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