To meet the 2020 15% renewable energy target, DECC needs to develop new ways of generating
renewable energy in all sectors, including heat. Some form of financial assistance
is needed to expand renewable heat because other forms of heat are currently cheaper.
Such support will enable more people to afford renewable heat and, by expanding
the market, help bring costs down more quickly.
Powers in the Energy Act 2008 allow the setting up of a Renewable Heat Incentive
(RHI). DECC’s aim is to make the RHI as accessible, flexible and user-friendly as
possible to potential investors in renewable heat at all scales.
On 10th March 2011 the Government announced the details of the RHI policy and information
on the regulations which they hope to be passed by Parliament in summer 2011, with
the scheme starting shortly after.
RHI News Update
Further to the announcement in March 2011 that gave more details as to how the RHI
scheme will actually be implemented, there was an announcement in August 2011 for
the start of the interim Renewable Heat Premium Payment (RHPP) Scheme. The aim of
the scheme is for those householders forging ahead with installations to be given
a cashback voucher in return for providing information about the equipment and installer
that they have used.
To apply for the RHPP voucher, please visit the Energy Savings Trust website as soon
as possible - there is a limited fund available and the offer is time limited to
March 2012... click here...
Articles:
The following are some useful / interesting articles on the RHI scheme...
03/08/11 - H&V News - Industry responds to RHI and RHPP - link...
01/08/11 - BBC News - Renewable heating systems: Household grants available - link...
22/07/11 - Builders Merchants News - Worcester gives RHPP a warm welcome - link...
10/03/11 - Greenbang - Heat incentive could revolutionise UK - link...
10/03/11 - Guardian - Q&A: Renewable heat incentive - link...
10/03/11 - RenewableEnergyFocus - UK launches renewable heat incentive - link...
10/03/11 - Which - Renewable Heat Incentive plans unveiled - link...
20/10/10 - FarmingUK.com - Renewable heat gets go-ahead - link...
28/05/10 - Renewable Energy Focus - DECC promises low-carbon energy but cuts spending
- link...
The RHI scheme has been proposed to work in much the same way as current feed-in
tariffs for solar and wind produced electricity, except that owners will receive
an income from their renewable heat installation either by having a heat meter fitted
to show the amount of renewable heat produced, or by a qualified estimator.
Full details of the policy and associated documents can be found on the DECC website
- click here...
The DECC press release can also be viewed here...
The RHI scheme will be introduced in two phases:
- In the first phase, long-term tariff support will be 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.
- The second phase of the RHI scheme will see households moved to the same form
of long-term tariff support offered to the non-domestic sector in the first phase.
This transition will be timed to align with the Green Deal which is intended to be
introduced in October 2012.
Key aspects of the RHI from 2011:
- Support for a range of technologies and fuel uses including solid and gaseous
biomass, solar thermal, ground and water source heat-pumps, on-site biogas, deep
geothermal, energy from waste and injection of biomethane into the grid
- Support for industrial and the commercial sector; the public sector; not-for-profit
organisations and communities in England, Scotland and Wales through the RHI tariffs
- Support for households through the Renewable Heat Premium Payment in the first
year of the scheme until the Green Deal is introduced in October when households
will become eligible for RHI tariffs.
- The RHI will be funded from general Government spending, not through the previously
proposed RHI levy.
