Government Incentive Scheme

In 2005, the Carbon Trust’s Biomass Section Review highlighted the significant potential of biomass heating in the UK. It showed that carbon savings of up to 20 million tonnes of CO2 per year could be achieved using UK biomass resources alone. It also identified that using biomass for heating typically gives the most cost-effective carbon savings of all uses of biomass and that this is particularly the case for small-to-medium scale applications.

The Carbon Trust was set up by the Government in 2001 as an independent company, to accelerate the move to a low carbon economy. To assist this development; Phase I of the Renewable Heat Incentive (RHI) has been established by the government to encourage users of high carbon fuels such as Oil, Gas, LPG and Coal, to convert to a low carbon alternative, renewable fuel such as biomass. The RHI is currently tax free, index linked (RPI) and guaranteed by the Government for 20 years.

For more information click to download the information sheets below:-

Explanation of RHI (PDF)

RHI tariff and payments

How energy is recorded

Finance options