Key aspects of the RHI from 2011

• support for a range of technologies and fuel uses including solid and gaseous biomass, solar thermal, ground and water source heat-pumps, on-site biogas, deep geothermal, energy from waste and injection of biomethane into the grid
• support for industrial and the commercial sector, the public sector, not-for-profit organisations and communities in England, Scotland and Wales, through the RHI tariffs
• support for households through the Renewable Heat Premium Payment in the first year of the scheme until the Green Deal is introduced in October, when households will become eligible for RHI tariffs

The RHI will be funded from general government spending, not through the previously proposed RHI levy. 

Key aspects of the non-domestic sector

• RHI payments to be claimed by, and paid to, the owner of the heat installation or producers of biomethane for injection
• payments will be made quarterly over a 20-year period
• for small and medium-sized installations (up to and including 45kWth), both installers and equipment to be certified under the Microgeneration Certification Scheme (MCS) or equivalent standard, helping to ensure quality assurance and consumer protection
• tariff levels have been calculated to bridge the financial gap between the cost of conventional and renewable heat systems, with additional compensation for certain technologies for an element of the non-financial cost
• heat output to be metered and the support calculated from the amount of heat used for eligible purposes, multiplied by the tariff level
• biomass installations of 1 MWth capacity and above will be required to report quarterly on the sustainability of their biomass feedstock for combustion and where they are used to produce biogas
• eligible non-domestic installations completed after 15 July 2009, but before the start of the RHI, will be eligible for support as if they had been installed on the date of its introduction
• the Gas and Electricity Market Authority (Ofgem) will administer the RHI including: dealing with applications; accrediting installations; making incentive payments to recipients; and monitoring compliance with the rules and conditions of the scheme 

Key aspects of the domestic/household sector

Further details will be published shortly on the eligibility criteria for the Renewable Heat Premium, but will include the following principles:

• a fair spread of technologies across all regions of Great Britain, including biomass, solar thermal and heat pumps (including air source heat pumps)
• monitoring to enable government, manufacturers, installers and consumers to better understand how to make sure ‘real life’ users get the most out of them, and to inform decisions on the tariff levels and other scheme parameters for phase 2
• a well-insulated home based on its energy performance certificate
• a householder must agree to monitor and record performance
• focus on people living off the gas grid, where fossil fuels like heating oil are both more expensive and have a higher carbon content