What is the Renewable Heat Incentive?
On 10 March 2011, the Government announced the details of the Renewable Heat Incentive policy to revolutionise the way heat is generated and used. This is the first financial support scheme for renewable heat of its kind in the world.
At a time when we can see many problems with relying on a rapidly changing world and continuous reliance on oil and gas, we are proposing to put in place a key foundation stone of our energy future where both carbon reduction and energy security are assured.
The Renewable Heat Incentive(RHI) policy document, sets out the detailed arrangements for this scheme, which will provide long-term financial support to renewable heat installations to encourage the uptake of renewable heat.
The scheme is being introduced in two phases.
In the first phase, long-term tariff support is targeted in the non-domestic sectors, at the big heat users – the industrial, business and public sector – which contribute 38% of the UK’s carbon emissions. Under this phase there is also support of around £15 million for households through the Renewable Heat Premium Payment scheme.
The second phase of the RHI scheme will see it expanded to include more technologies as well as support for households. In light of the later than expected launch of Phase 1, as a result of changes required by the European Commission, we are reviewing the timetable for introducing Phase 2. We will be able to confirm the exact timing early in the New Year.