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The Low Carbon Economy Ltd

11 Mar 2011 09:03:12

Renewable Heat Incentive launched by government

Renewable Heat Incentive launched by government
Energy and climate change secretary Chris Huhne has launched the Renewable Heat Incentive (RHI), the first scheme of its kind in the world.

The £860 million government initiative is intended to increase the number of renewable heat installations in commercial, industrial and public sector settings seven-fold by 2020.

Initially, a quarter of the budget will also be allocated to a RHI Premium Payment to encourage take up among up to 25,000 homeowners.

Residential installations will be able to access the full system of payments under the RHI, which are set at different levels depending on the type of technology, from October 2012 to coincide with the launch of the Green Deal.

Eligibility criteria will be applied to the Premium Payment, requiring properties to be well insulated based on the energy performance certificate and homeowners to provide feedback.

The RHI tariffs will be available to all those who installed eligible technology after July 2009.

Some 150,000 positions within the manufacturing, supply chain and heating industries will also be supported by the RHI.

Gaynor Hartnell, chief executive of the Renewable Energy Association, said: "This novel policy should be much more effective than capital grants, as it rewards the production of renewable heat, not just the installation of equipment." ADNFCR-1235-ID-800456324-ADNFCR

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