Renewable Heat Incentive
By adopting a Highly Efficient renewable heating source, such as Wood Waste Technology’s new hot water boiler system, businesses could receive quarterly RHI payments for 20 years, reduce heating bills and waste removal costs, and improve their carbon footprint.
Funded by the Government and regulated by Ofgem, the RHI scheme pays for renewable heat produced, giving businesses an income for every kilowatt hour of heat generated.
As an example, the table below shows the approximate RHI payback yield (for guidance only) for a 209kW boiler.
Renewable Heat Incentive Payments Calculator
| New Tariff for installations accredited on or after 1 July 2016 |
Small Biomass | Medium Biomass | ||
| RHI Tariff Cut-off (Heating hours/year) |
1314 | £0.0326 | £0.0524 | £/kWh |
| Woodfuel boiler efficiency | 92.4% | £0.0086 | £0.0227 | £/kWh |
| Fossil fuel boiler efficiency assumed | 85% | |||
| Scenario 1 | Scenario 2 | Scenario 3 | Scenario 4 | |
| Boiler size (kW) 300 | 209 | 209 | 209 | 209 |
| Annual heat USED (kWh/year) | 400,000 | 500,000 | 600,000 | 700.000 |
| RHI Size Category (S/M/L) | M | M | M | M |
| Annual heating hours | 1,914 | 2,392 | 2,871 | 3,349 |
| Annual RHI income (£/year) * |
£17,236 | £19,506 | £21,776 | £24,046 |
| Land Fill Charge (£/t) ** | -£86.00 | -£86.00 | -£86.00 | -£86.00 |
| Woodfuel Moisture Content (%wb) | 10% | 10% | 10% | 10% |
| Annual Woodfuel Demand | 92 | 115 | 138 | 161 |
| Annual land fill saving (-£ / year) * | -£7918 | -£9,897 | -£11,876 | -£13,856 |
| Net Annual Revenue (RHI-fuel Cost in ) (£) |
£25,154 | £29,403 | £33,653 | £37,902 |
| Displace fossil fuel | Gas | Gas | Gas | Gas |
| Displace fossil fuel price (p/kWh) | 3.9 | 3.9 | 3.9 | 3.9 |
| Annual fossil fuel cost (£/year) | £18,353 | £22,941 | £27,529 | £32,118 |
| Total Annual Benefit (£/year) |
£43,507 | £52,345 | £61,182 | £70,020 |
Wood Waste Technology can help companies that are interested to find out more – just call our dedicated team who will talk you through the details and what they mean for your company.
It’s also worth reading the latest information about the RHI at www.rhincentive.co.uk