The Renewable Heat Incentive (RHI) offers an incentive for investment in renewable heat in a similar way to FiTs for renewable energy production.
The RHI offers premium payments for heat generated by using renewable methods such as anaerobic digestion (AD) and biomethane injection to the gas grid (BtG). The scheme is based on a tariff system with a fixed payment per kWh of renewable heat generated over the lifetime of the tariff.
The tariff for BtG is set at 6.5 p/kWh. CSL believes that this tariff will provide an attractive option for plants sized over 300 cubic metres per hour. They will now have a choice of generating electricity or injecting gas to into the grid as both options now give broadly similar returns.
"The RHI is the first of its kind in the world. The scheme will help drive around a seven-fold increase in renewable heat over the coming decade, which will help what is currently a fringe option, firmly into the mainstream" Greg Barker, Minister for State for Climate Change