This month has seen the launch of the previously reported Renewable Heat Incentive (RHI), which is a scheme designed to support emerging technologies and businesses in the UK by rewarding those who reduce their dependence on fossil fuel powered heating systems. A press notice released earlier this month stated that:
- £860m government scheme expected to increase green capital investment by £4.5 billion up to 2020, stimulating a new market in renewable heat.
- Incentive to increase number of industrial, commercial and public sector installations by seven times to 2020.
- A full system of RHI payments will be available to households from October 2012.
- In the interim, more than a quarter of the first years budget to be guaranteed for up to 25,000 household installations through a “RHI Premium Payment” to encourage take-up.
Half of the UK’s carbon emissions come from the energy that produces heat and 95% of heat in the UK is currently produced using fossil fuels. It is hoped that the new scheme will encourage the installation of equipment such as renewable heat pumps, biomass boilers and solar thermal panels to reduce emissions and support the existing 150,000 jobs in the heating industry.
The government will pay out for the tariffs for 20 years to eligible technologies that have been installed since 15th July 2009 with payments being made for each kWh (Kilowatt hour) of renewable heat produced. The tariff payments will start for homes alongside the Green Deal from 2012 to allow a more whole-house approach to heat production and energy saving.
Since the launch it has been decided that Air Source Heat Pumps will not be included in the scheme as they need ‘to better understand the costs associated with the technology’ before they can be included in the RHI. The government explained that ground source and water source heat pumps would attract the initial incentive which starts in July 2011, but ground source heat pumps will now not be considered as part of the scheme until at least 2012.
To read the Press Notice in full, simply click here.
March 28, 2011 in