RHI & Finance

What is the Renewable Heat Incentive?

The Renewable Heat Incentive is a government financial incentive to encourage the switch to renewable energy by households, businesses and the public sector. It is a payment for the heat you generate via renewable energy sources and it’s a way to help the UK reduce carbon emissions.

The RHI is administered by the official regulator Ofgem who pay the tariffs quarterly

If you are a commercial user, or heating more than one property, you will most likely be eligible for the non-domestic RHI scheme. The RHI tariff provides you with guaranteed, index linked payments for twenty years designed to give you a return on your heating costs.
Non-Domestic RHI Tariffs

If you are a domestic user, the domestic RHI scheme provides you with guaranteed, index linked payments for seven years with tariff levels higher than the non-domestic RHI scheme. The latest tariff for the scheme effective from 1st July 2018 is 6.74p/kWh. There is a limit of 25,000 kWh payable. So, you could potentially receive up to £1,685.00 per annum for 7 years, a total of £11,795.00 over the lifetime of the scheme.

Domestic RHI Payment Calculator

Enhanced Capital Allowance (ECA) scheme for energy-saving technologies

The Enhanced Capital Allowance (ECA) scheme exists to help businesses like yours invest in energy-saving products from the world-leading Energy Technology List (ETL).

The comprehensive list details energy efficient products, including plant and machinery that meet certain set criteria. Thanks to the ECA you can write off 100% of the cost of these assets against your taxable profits in the first year.

Using the ETL is ideal if you want to:

  • Invest in energy efficient equipment for your business
  • Save money by reducing tax due on your profits
  • Lower overheads and reduce energy bills
  • Build your assets
  • Boost cash flow
  • Reduce your business’ energy consumption and emissions
  • Meet strict environmental legislation requirements

Equipment Finance can be a highly tax efficient method of financing an asset for you or your business.

We have several companies that can offer you an easy, affordable and flexible finance solution.

Like many of our previous customers, these companies finance solutions will help you or your business invest in renewable technology, which will reduce your carbon footprint and save on fuel costs.

Some features and benefits provided

  • 100% Finance—no upfront investment required
  • 100% Tax Deductible—offset payments against tax liability
  • Equipment pays for itself—Reduced fuel costs combined with RHI payments*
  • No Deposit**
  • Low Rates

Once you are happy with the biomass boiler installation quotation from us, we can put you in touch with an advisor to discuss the finance solutions available to you. So, contact us now to arrange a free survey and no obligation quote.

Reduced VAT

For installations of energy saving materials such as biomass boilers in residential accommodation the reduced rate of VAT applies (VAT Notice 708/6), which is 5%.

However, if the dwelling is a new build the VAT is zero rated.

The reduced rate does not apply to the installation of energy-saving materials in hospitals, prisons or similar institutions, hotels or inns or similar establishments.