FAQs

At present RHI installations can be counted as zero-rated under the CRC. This is therefore better treatment than that for FITs and RO installations.

Chapter 6 of the government’s RHI announcement says

CRC Energy Efficiency Scheme

The CRC is designed to increase energy efficiency in large public and private sector organisations by driving behaviour and infrastructure change to achieve carbon reductions. Where renewable electricity receives financial support (under the RO or FITs), such electricity does not count towards compliance with the CRC obligations. This is to avoid detracting from the CRC’s primary purpose of increasing energy efficiency.

At present, renewable heat, however, does count as “zero rated” (i.e. can be counted as reducing carbon consumption in compliance with the CRC). The Government may review this position for the future.