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Robinson & Hall

09 Dec 2011 10:12:26

Renewable Heat Incentive – now open for business

The Renewable Heat Incentive (RHI) is a new government initiative providing finance initially to non-domestic renewable heat generators in Great Britain.

Designed to revolutionise the way heat is generated and used, this is the first financial support scheme of its kind in the world. Under the scheme's terms, organisations may apply for assistance and, if successful, receive inflation linked payments for heat generated from non fossil fuel sources over 20 years.

The following are the main technologies included in the scheme:

1. Biomass
2. Solar thermal
3. Ground source heat pumps
4. Hydro
5. On-site biogas combustion

There was widespread industry dismay when air source heat pumps were not included in the scheme. DECC have confirmed they are currently reviewing ASHPs and will issue a further statement early in the New Year.

The RHI scheme is being introduced in two phases. In the first phase, long-term tariff support is targeted within the non-domestic sectors, focusing on high energy consumers, including the industrial, business and public sectors. Under this phase there is also support of approximately £15 million for households through the Renewable Heat Premium Payment.

The second phase of the RHI will see the scheme expanded to include more technologies as well as support for households. Details about the introduction of phase 2 are expected to be announced in early 2012 and will likely be tied in with the government's much anticipated Green Deal.

The RHI is being administered by Ofgem and more information can be found on www.ofgem.org.uk

In the meantime, if you have any projects where you feel could benefit from renewables then please contact Robert Franklin.

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