Government announces a Renewable Heat Incentive to reduce emissions
10 March 2011
A government scheme worth £860 million has been launched to stimulate the market in renewable heat by guaranteeing a payment for 20 years for renewable heat production.
Heating accounts for 47% of the total UK final energy consumption and 46% of carbon emissions. The Renewable Heat Incentive (RHI) incentive aims to increase the number of industrial, commercial and public sector installations by seven times to 2020 and will support technologies including biomass, ground source and water source heat pumps, solar thermal and biomethane production. Technologies such as anaerobic digestion will receive a boost from the news.
Households won’t lose out either. A phased approach is being taken with a ‘RHI Premium Payment’ being made available to assist with purchase of equipment for up to 25,000 households who will be early adopters and agree to become testers of the system. A full system of RHI payments will be available to households from October 2012 when the Green Deal is introduced which is expected to encourage a more whole-house approach to heat production and energy saving.
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