One of the outcomes of the Energy Act 2008 was the fact that it allowed a Renewable Heat Incentive (RHI) scheme to be set up in the UK. Details of an RHI scheme were announced in March 2011 with further details to follow over the year. Moving more heat production to renewable sources forms a key part of meeting the UK’s renewable energy targets by 2020, and it is hoped by the government that the Renewable Heat Incentive will help reduce carbon emissions by 44 million tonnes by 2020.
Currently other forms of energy such as gas and oil are often cheaper than renewable alternatives making it difficult for users to justify the switch. The Renewable Heat Incentive will support technologies such as ground source heat pumps, solar thermal, biomass and biomethane by paying tariffs per kilowatt of heat generated for 20 years. These tariffs, which vary depending on the technology and size of the application, will be fixed and adjusted with inflation on take-up of the scheme, although it is expected that the tariffs offered will decrease over time. They will be available first to industry, commercial, public sector and eligible community installations completed since 15th July 2009.
From 2012 the tariffs will also be available for domestic installations completed since 15th July 2009. In the meantime approximately £15 million has been made available in Renewable Heat Incentive Premium Payments, offering capital to householders towards the cost of installing eligible equipment. With the exception of applicants wishing to install solar thermal panels, homes must not currently be connected to mains gas to be eligible for Premium
Payments for other technologies. There are also conditions attached, such as agreeing to give feedback on the equipment and having a suitably insulated home, but those receiving payments will also be eligible for the tariffs once available.
Further information on the Renewable Heat Incentive scheme can be found at the Energy Saving Trust website.
Source: www.decc.gov.uk and www.est.org.uk 2011
