FAQs
How have the RHI tariff levels been set?
The approach adopted has been to review the cost of each technology at various scales and to set tariffs that deliver an adequate return on investment
Chapter 6 of the government's RHI announcement says
Cost-based approach
We have adopted the principle of ‘cost-based’ tariffs, where tariff levels vary depending on the cost of the technologies at different scales. In particular, the tariffs are calculated to:
- compensate for the additional cost of the renewable technology over fossil fuel heating;
- provide an incentive to overcome non-financial barriers; and
- provide a return on the additional capital invested.
Within the range of renewable technologies, we expect the cheaper sectors (i.e. large-scale commercial and industrial installations) to deliver the largest proportion of overall renewable heat generation.
