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Renewable Heat Incentive Scheme

Oct 20, 2010

Government announces £850 million support for Renewable Heat Incentive scheme.

From the Department of Energy & Climate Change Website. (visit the website)

As announced on 20 October 2010, as part of the Spending Review [External link], the Renewable Heat Incentive (RHI) will go ahead in 2011. We believe the RHI Scheme is the first of its kind in the world and will therefore be a world-leading scheme to provide long term support for renewable heat technologies, from household solar thermal panels to industrial wood pellet boilers. The RHI will represent over £850m of investment over the spending review period, driving a more-than-tenfold increase of renewable heat over the coming decade and shifting renewable heat from a fringe industry firmly into the mainstream.

Heat production is responsible for around half (49%) of the final energy demand consumed in the UK and roughly half of all UK’s carbon emissions. Taking action now to switch from fossil fuels to cleaner and more sustainable green sources of energy will reduce the impact that our heat requirements have on the environment and help ensure the UK has an energy supply that is safe, secure and reliable.

As part of the Spending Review process we have looked again at the RHI to target the scheme more effectively. We have more work to do to determine support levels, but we believe the level of savings required from the spending review will enable us to meet our key targets in renewables deployment and carbon savings.

We remain committed to the ambition of moving from 1% to 12% of all heat generated from a renewable source by 2020. This will require all aspects of society to play their part – householders, communities, public, commercial and industrial sectors.

We expect to be in a position to announce the details of the scheme, including RHI tariffs and technologies supported, before the end of this year, and be open for business from June 2011.